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Old 10-07-2010, 03:17 PM
 
Location: Lansing, MI
2,948 posts, read 7,002,833 times
Reputation: 3271

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OP, gotta congratulate you for sticking to Dave's plan and getting the balance paid down.

Our credit system is a** backwards, and I've run into the problems from the other side of the spectrum. I needed a car loan and had NO credit. You would think not owing 10x what I'm worth would make me a good candidate because it demonstrates I actually live within my means. But no, I had to jump through many hoops to get a car loan even with a 50% down payment. A year later, I was approved for a 2nd car loan, and 6mths later I've been receiving CC offers about 1x per month.

In reality - if you stick within a reasonable budget and prove you're willing to pay what you owe, have closed accounts will not hurt you - it is actually the more responsible thing to do rather than let those account sit there with available credit that can be used. If you keep 1 open plus a car loan or mortgage, you're proving you are a good faith payer and can handle the responsibility, and that should keep your score up. I do not think having credit available beyond what you could realistically pay off in a lifetime demonstrates credit worthiness.. more like train wreck waiting to happen. Hopefully, the credit bubble burst will bring banks around to see this logic.
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Old 10-07-2010, 06:41 PM
 
48,505 posts, read 96,610,333 times
Reputation: 18304
Bascailly the OP is just seeing what is happening to those that ran high balances in the past compared to income and debt.Many will be seeing alot less credit available in the future with the new regualtions.Not having a credit histroy makes it even harder for some in tight credit situations. Income to debt pays a bigger and bigger factor as well as past history of payment.
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