Actually my method is superior to the OP method because it is more accurate. AND not once was I condescending regarding this equation. All I did was to post that it won’t work because it is not a valid equation. And I am not the one getting butthurt over it.
And honestly, since I made it known that your OP was not a valid one, I haven’t seen another person use it. People like accuracy, including myself.
My DTI is 9% according to the google calculator I just used. I don’t pay rent or mortgage (parents refuse to accept it), I have no car loans, I only have 11k of school and CC debt. Boy do I hate CC’s. Once I pay em all off, I’m keeping one to maintain good credit (buy gas and such) and then cutting up the rest. CC’s are the devil!
Having one major CC is good for you, using it wisely as you have stated.
Personally, I would keep 3 cards, with open credit lines. Use each one to make a $25 or more purchase every month to keep the account active and pay off the total amount next billing cycle. That will help a lot in maintaining a good score. Going down to just one CC could hurt you in the long run.
yep, I see that now after doing some google searching. I should really talk to a financial planner/adviser so I have a better grasp on this stuff and try to make the most of my savings…
my goal is to NEVER be in significant credit card debt. i dont think i ever will be (voluntarily) because i HATE owing money to anyone or anything, just stresses me out.
just realized this is OT but all this CC debt talk is reminding me lol
When you get to the point where you can “cut up the rest”- don’t forget that length of credit history is a factor too in your credit score, so closing accounts for cards with a long history may not be as helpful to your credit score than keeping them open and just using them once in awhile.
Why are you going by value, though? Some of us don’t owe anything on their cars and/or make enough to buy more expensive cars than others. It should be based on how much in debt you are on your vehicles, not necessarily how much each vehicle is worth.
I’ve never been in significant credit card debt. I’ve had credit card debt though before. Buy a house and i’m sure almost everyone will run into a little debt.