Question about good credit

[Starbucks Anarchist]

I'm currently apartment hunting in NYC and have a dumb question regarding credit ratings:

As far as credit cards go, does it matter how big your balance is as long as you're making payments on time? Also, on one card, my balance is about 20% of the card limit, while the other is at about 60% of the limit, though that one should drop to 20% when I make my next payment.

I've also paid my rent on time every time since I've lived in an apartment, if that helps.

Sorry for the dumb question, but I'm fairly new to this whole thing and don't want to jeopardize my chances of getting a good apartment.

Any help would be appreciated. Thanks.

[Gormy Cuss]

1. Paying everything on time is the most important thing.

after having a credit history at all, that is.
Check here for some good info:
http://homebuying.about.com/cs/yourcreditrating/a/credit_score.htm

[Starbucks Anarchist]

28. Thanks.

[GOPisEvil]

2. For buying a home, debt to income ratio is very important.

The lower the better of course.

[Starbucks Anarchist]

3. Okay.

My debt is about 10% of my annual income -- that's pretty good, right?

[GOPisEvil]

6. That's quite good.

:thumbsup:

[Starbucks Anarchist]

15. Although I'm looking for an apartment.

But even then, would 10% be good?

[beyurslf]

30. Are you including housing in that? DTI includes car payments, student

loans, other loans, credit cards, and monthly housing payments or rent.

10% is excellent.

[Starbucks Anarchist]

33. No loans or house payments.

Though my yearly rent is about 1/3 of my yearly income. I only factored in credit card debt.

[amerikat]

4. Get your free credit report online

https://www.annualcreditreport.com/cra/index

You can get a report free from each of the three credit agency's once a year.

I just got all three and they were virtually identical. So you might just want to get one now and try one of the others later.

[liontamer]

9. did they email it to you

or did you have to wait for it in the mail?

[amerikat]

10. You get it right on line or you can have it mailed

I just got mine online.

[liontamer]

11. thanks

[IronLionZion]

5. Paying on time is good, but there are a lot of factors

I thought I had excellent credit since I pay my balance in full and on time each month. I never carry a balance for any reason ever, but I have only medium credit and they are very reluctant to raise my limit. I may need to get a second card from the very liberal Working Assets.

You can check your credit report for free once a year from annualcreditreport.com and you can get your credit score for about $5.

Don't use freecreditreport.com, it's not really free.

[Starbucks Anarchist]

12. My situation's a little different.

I always pay on time, but only a portion of the balance -- never paid in full.

Recently, I've been spending less and keeping the balance down, so eventually, it'll be at a much more manageable balance -- will that effect anything?

Also, one of my cards had the limit extended recently.

[Dangerously Amused]

7. Your credit is good with me.

:7

[Starbucks Anarchist]

8. Can I get a "cash advance"?

:evilgrin:

[Dangerously Amused]

13. Sure. But I'll need something for collateral.

Whatcha got?

[Starbucks Anarchist]

14. My soul?

:shrug:

[Dangerously Amused]

18. Already got one of those.

How about your heart?


Or better yet... :evilgrin:

[Starbucks Anarchist]

21. My heart is already yours.

:loveya:

But everything else will cost you a dollar. :D

[Dangerously Amused]

24. Awwww.

:loveya:



So everything else is a dollar? You mean like, a dollar for the whole works? If that's the case... SOLD!!! (Even if not, I'll buy it all anyway and still a bargain at that!)


Do you take Paypal? - I can get the money to you within minutes...

[Starbucks Anarchist]

25. A dollar for the whole works.

Just remember -- no refunds. :D

[Dangerously Amused]

26. Refunds?! Are you kidding??

Dude, I plan to clone you and have my own private harem of SAs running all over the place!


:woohoo:

[Starbucks Anarchist]

27. You'll get tired of all of me in a day.

:D

[serryjw]

16. NYC is the toughest

What is your debt to income ratio?

How long on the job?

Keep rent about 30% of net income

[Starbucks Anarchist]

17. Here:

Debt is about 10% of annual income.

One year on my current job, 1 1/2 on the previous (laid off) one, 2 1/2 years total of lifetime work history.

I live in L.A. right now, and my yearly rent comes to about 33% of my annual income. In NYC, even w/ a roommate, the savings would be marginal, I think.

[serryjw]

19. Sounds like you will be OK

How much are you looking to spend on rent? Do you KNOW your roommate? What happens if you become responsible for ALL the rent if roomamte is a flake?

[Starbucks Anarchist]

20. I'd like to spend $700/mo at most.

As far as roommates go, I'm trying to get a hold of people I already know who are reliable people, so I'm still working on that.

[serryjw]

22. For the APARTMENT? or your half?

You will get a dumpster for $700!!!!!!!

[Starbucks Anarchist]

23. Sorry, I meant my half.

LOL, I currently pay $700 for a studio in L.A.

[serryjw]

32. You will find a one bedroom

for $1400. Not easy, but doable. You will not find a two unless it is in an unsafe neighborhood

[Starbucks Anarchist]

34. Actually, I found a 2-bedroom for $1,350.

It's in Astoria, which is safe.

[serryjw]

35. I don't know Queens

I thought you wanted to live in the city, sorry

[Starbucks Anarchist]

36. LOL, not Manhattan.

No way in hell I could afford something there. I also don't want to spend thousands of dollars on a 250 square foot apartment. :D

But if I work in Manhattan (likely), then Astoria is only a 20-minute subway trip from there.

[serryjw]

37. Sounds good

I left NYC 20 years ago when I was spending $900 for a one bedroom. My friends had a one bedroom in midtown and sub-leased it for $2000/months 5 years ago!

[Starbucks Anarchist]

38. $900 for a 1BR sounds reasonable today.

:D

BTW, you just hit 6,000 posts. Congrats! :toast:

[serryjw]

39. Yeh,,,,,,,,BUT that was 20 years ago!

Thanks.I never pay attention to the number of posts

[beyurslf]

29. Your balances should be less than 40% of the credit limit

for the best result. Paying rent on time is not on your credit report but can help establich credit worthiness as an alternate form of credit--provided you can prove it with canceled checks.

But, paying on time is more important on your credit cards than balances.

[leftyladyfrommo]

31. Credit Scores Pick Up on lots of stuff.

If you have too man recent inquiries that will lower your score. If you have cards charged to the max that will lower the score. If you have too much credit or too little credit. If you have recent delinquent payments it will lower your score.

It won't know how much you make or how you pay your rent unless your landlord sends the info to the bureau - and most don't.

House payments and auto payments carry the most weight. Do no be late on those. Next come credit cards. Do not open several new accts at a time. It will pick up on that.

Utilites won't show up at all unless there is a collection filed against you.

Collections, foreclosures, delinquent payments (over 30 days), or old unpaid balances are the things that really lower your scores.