What debt-to-income ratio can you reach before CC providers start refusing you?

alexanderalexander

Question's in the title, pretty much. I realise that there is not a fixed ratio which all providers will subscribe to, but assuming an otherwise good credit history can anyone suggest a ball-park figure? (I am of course talking about the availability of 0% purchase/BT deals suitable for stoozing, not sub-prime CC providers).

Edit: I've just realised that debt-to-income ratio has a technical meaning of the proportion of your salary being spent on minimum debt repayments. I think I really mean the principal of loan:salary ratio.

Tixy

General (unscientific) evidence from these forums suggest that in the current climate people start getting refused when the new application would take them to total credit (debt and unused) of more than 50% of their gross salary.

There are of course still lots of people with more than this from when it was easier to get credit.

That said there are cases where people have been able to get more than this even at the moment. It would appear these are often people who are high earners, use and pay off a lot of credit, have a history of running a number of high limit credit cards concurrently and not having any problems, a spotless credit record etc - I suppose that might describe a typical frequent stoozer.

nomoneytoday

42 - it's the answer to everything isn't it

alexanderalexander

Tixy wrote: »

General (unscientific) evidence from these forums suggest that in the current climate people start getting refused when the new application would take them to total credit (debt and unused) of more than 50% of their gross salary.

There are of course still lots of people with more than this from when it was easier to get credit.

That said there are cases where people have been able to get more than this even at the moment. It would appear these are often people who are high earners, use and pay off a lot of credit, have a history of running a number of high limit credit cards concurrently and not having any problems, a spotless credit record etc - I suppose that might describe a typical frequent stoozer.

Thanks for the reply - that's about what I'd expected.