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Question on credit score and balance transfers

January 22nd, 2008 at 11:08 pm

Here's about the best online info I could find on the individual components of a credit rating:

Text is http://en.wikipedia.org/wiki/FICO_score and Link is
http://en.wikipedia.org/wiki/FICO_score

It is an unfortunate fact of life that I have to keep shuffling while I try to pay down balances. But when I shuffle to a new 0% or low rate, how much of the available credit line should I use? I'm thinking maybe 90% to maximize the amount of cheap money, but trying to stay under the triggers for ratio of debt to available credit. But I have no idea what the triggers are, or even if they are on an account by account basis or a cumulative basis.

Boy, if this one from the Wikipedia
Text is http://en.wikipedia.org/wiki/Credit_history#How_credit_rating_is_determined and Link is
http://en.wikipedia.org/wiki/Credit_history#How_credit_ratin... article is true, I am REALLY in big trouble! It brings up a very interesting point though, since I am looking at transferring OUT of a CC with a high APR but a low minimum payment to one with a very low 2% APR and most likely a much higher minimum payment.
# Control of debt - Lenders want to see that borrowers are not living beyond their means. Experts estimate that non-mortgage credit payments each month should not exceed more than 15 percent of the borrower's after tax income.[citation needed]

One more bit of info - the Credit section of my wamu CC account (which is very nice, BTW) implies that maybe it's 50% of an individual credit line that they look at. My score did go back up last month and looks pretty good right now.

Posted in General, Reference | 2 Comments »

2 Responses to “Question on credit score and balance transfers”

  1. Broken Arrow Says:
    January 23rd, 2008 at 07:22 pm 1201116169
    1201116169

    I am continually surprised at how wellt Wikipedia, of all sources, have continued to provide useful information. Big Grin

    Thanks for sharing.

  2. Ralph Says:
    January 23rd, 2008 at 11:39 pm 1201131566
    1201131566

    Yeah, me too, BA - it's usually my first source because of its amazing completeness and consistency of article layout. I always realize, of course, that it is a "secondary" source, and I really should try to use the references it cites to do a further check of a more "primary" source, and as you can see, that second snippet said "citation needed", so of course I have to take that part with a couple of grains of salt. But I am a big proponent of it, flaws and all. I think the "many eyeballs" idea has a huge amount of merit on policing errors, bias, and falsehoods.

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