Posted on: 03rd Aug, 2010 03:21 pm
What has more of an effect on the debt to income ratio? To have credit card debt or fixed payment loans? In other words, which is better...to pay off revolving credit cards of about $8,000 or to pay off the fixed amount loans (one student loan and one personal loan) totalling approximately $8,000?
Thanks.
Thanks.
Welcome brianbotzet,
Whether you pay your fixed loans or your revolving credit, both will have a positive affect on your debt to income ratio. Once you pay off the dues, your debts will get reduced and the ratio will increase. Thus, it will be easier for you to qualify for a new loan.
Whether you pay your fixed loans or your revolving credit, both will have a positive affect on your debt to income ratio. Once you pay off the dues, your debts will get reduced and the ratio will increase. Thus, it will be easier for you to qualify for a new loan.