Profile picture for rblakenyc

How does credit card use but no revolving balance impact debt ratio / amount approved?

I use my credit cards quite a lot but pay balances in full every month.  Am I correct that my monthly, in full, credit card payments count as monthly debt but not cash payments.  This doesn't feel right.  Have I got it wrong?  Should I just pay with cash for a bit?
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June 19 2009 - Upper East Side
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Answers (4)

Profile picture for Mr Caveat
the absolute best way to improve your credit score using a card is to buy a big~ish item and pay it off over 2 months. you want to keep your utilization down though so use a high limit card

paying the 25 minimum and paying in full essentially count the same on your credit. no bonus points, no demerits.
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June 20 2009
Be carefull with the balances.  Never use more than 50% of the available balance on any 1 card.  It will bring your score down even if all payments are on time.   
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June 19 2009
Profile picture for droopyd
The balance on the card will count against your percent of credit utilized, even if you pay in full each month. I would definitely use debit cards to the maximum extent possible for at least 2 months before you apply for a loan.
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June 19 2009
Profile picture for rblakenyc
answer my own question but ask another...  I saw elsewhere that only min payment on balance counts toward the ratio. 

"If you pay more than the minimum amount on your credit cards, this does not count against your DTI, since only the minimum amount you're required to pay is included in the total.

But, I use charge cards which require pay in full.  Guess I should switch to credit cards for a bit... right?
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June 19 2009
 
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