upon me having college loans that are in good standing. Because it is a debt. Is he misinformed or right? Aren't you building credit by repaying loans in your name on time? How exactly do you obtain the credit loan agencies and or creditors look for when purchasing a monthly fee for a car or place to live?
2006-08-20 21:09:31 · 4 answers · asked by Pep Streebeck 1 in Business & Finance ➔ Credit
It depends on your debt to income ratio. The higher your debts when compared to your income, the less likely you'll be to repay things. If you have good credit because you pay your bills on time, that will count for you, but having too much debt, even in good standing, will definately be a negative. The average rule seems to be that ALL of your debt should not take up more than 1/3 of your income. But this will vary creditor to creditor. They do look at a variety of factors before making a decision. Current debt is only one of them.
2006-08-20 21:18:08 · answer #1 · answered by Katia 3 · 0⤊ 0⤋
Katia's answer is correct. Good credit normally will not hurt your chances. The key difference between home loans and other types of conventional credit is that home loans look more closely at the amount of debt you have (and the amount of your payments) in proportion to your income. Too much in debt obligations, even ones that are handled well, can limit your ability to take on the additional debt of the mortgage.
2006-08-21 02:00:21 · answer #2 · answered by Bill C 1 · 0⤊ 0⤋
it really is not important how much debt you really have. if you pay them on time- your credit score go up. this can make difference only for qualification for the mortgage you apply , because your debt ratio will be to high. general rule is , that you can not spend more on your monthly payments( student loans, car payment, credit cards) and mortgage payment with tax and insurance than 38% of your monthly income. if you know that you will going to be paying your student loans for a while- built your credit score and don't worry there is many mortgages programs for people like you.
2006-08-21 16:35:13 · answer #3 · answered by bianca 4 · 0⤊ 0⤋
they will not look down on it. as long as they are in good standing you are fine. good luck and congrats on the new home
2006-08-20 21:17:47 · answer #4 · answered by when's my next vacation??? 4 · 0⤊ 0⤋