Debt to Credit Ratio

iVillage Member
Registered: 07-05-2006
Debt to Credit Ratio
1
Mon, 08-17-2009 - 1:35pm
I was just going over DH's Equifax credit report and I noticed something BAD! We have no credit. We closed all of our credit cards....or they were closed for us! ANd the only debt we currently have (on file at least) is our mortgage. So this is making our debt to credit ratio at 95%. That's horrible! But how do I fix this? I don't want any credit and I'm not sure I could get a credit card anyway. Is there anything I can do to help my debt to credit ratio?

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Mon, 08-17-2009 - 4:19pm
If you don't want to get any additional credit, then the answer is to keep plugging away at the mortgage. Frankly, the biggest reason to have a decent credit score is to get more credit. If you don't want more, then I wouldn't spend another moment thinking about it. If you find you're getting dinged by things like auto or home insurance, I would contact companies and fight tooth and nail to make sure they offer you the best rates because your credit score is not bad because of late payments, etc., it's because you choose to live without credit cards.

All my best,
Danni
cl-phocid, Debt Support Group



All my best,
Danni