How do I improve the debt to credit ratio on my credit report?
cnoel912 asked:
The only available credit that is listed on my credit report is my student loan. The current balance of the student loan is $23,500 and it started at $25,000, so my debt to credit ratio is 92%! I keep getting denied by credit card companies because of this high ratio (they state this reason on their “you have been denied” notices. How can I improve my debt to credit ratio so that I can, in turn, improve my credit score?
Vanessa
The only available credit that is listed on my credit report is my student loan. The current balance of the student loan is $23,500 and it started at $25,000, so my debt to credit ratio is 92%! I keep getting denied by credit card companies because of this high ratio (they state this reason on their “you have been denied” notices. How can I improve my debt to credit ratio so that I can, in turn, improve my credit score?
Vanessa
Tags: Credit Report, Debt Ratio, Student Loan
March 3rd, 2009 at 10:28 am
Julie
Have you tried store cards and gas cards they are generally easier to get. Also, walk into a credit union and explain to them that you would like a credit card but have a student loan. They tend to work with people - you are really not just a number.
I heard that using more than 70% of your available balance is detremental to your rating. I guess it applies to student loans (you learn something new every day).
Once you start working pay it down. Sorry I could not help. /
March 4th, 2009 at 8:38 pm
Brandon
Debt to limit ratio pertains to revolving credit. Your student loan is not revolving credit.
Perhaps you mean your debt to income ratio. That includes all debt. Or, more likely you are being denied due to limited credit history.