Crystal asked:
I am trying to get approved for a credit card. My credit to debt ratio is %11(credit) to %89(debt)and my credit score is 700. I have one credit card and I am the cosigner to my car. My total debt is 19,000 paying $401.00 a month. All payments paid on time. I get declined for credit cards and I only have one more chance to apply for one. Which route should I go? Apply as bad credit, or credit buildup or do not have enough credit history?
Answer:
Your debt ratio is a single number that can be determined by dividing your total credit card debt by the total amount of revolving credit available to you. It doesn’t include loans, though a common error occurs when HELOC’s (Home Equity Line of Credit) are counted in the ratio. They shouldn’t be. The lower your debt ratio, the better your score.
Different lenders use different criteria to determine who qualifies and on what terms. A great insider strategy we use in house is a website called www.WhoGaveMeCredit.com. Consumers post which lenders approved or declined them for credit and what their credit situation was at the time. This way you can see which lenders will approve your application BEFORE you submit it, which will also lower your inquiries, further protecting your credit score.
