What size loan should I ask for?

paddyrg

dresdendave wrote: »

The OP states he has credit cards, I can't see any mention of credit card debt though. Perhaps he uses the cards properly and pays in full each month.

Indeed, but it does still count as available credit, so the card credit limit counts against the amount that any sensible lender would consider repayable.

debtcutter

paddyrg wrote: »

Indeed, but it does still count as available credit, so the card credit limit counts against the amount that any sensible lender would consider repayable.

But having an available limit that isn't used will also lower your balance to limit ratio, which shows that you're probably not living beyond your means

izools

Although we're digressing massively from the OP's original question and the task at hand, I've personally started to move away from this "Limit to income ratio" lark that we've all spent several years talking about.

I don't think lenders really pay that much attention to it.

They are certainly very interested in balance to limit ratio and balance to income ratio, but some of the lines of credit myself, friends and family have been approved for over the last year suggest that limit to income isn't factored in so much in to lenders calculations as much as I thought...

debtcutter

izools wrote: »

Although we're digressing massively from the OP's original question and the task at hand, I've personally started to move away from this "Limit to income ratio" lark that we've all spent several years talking about.

I don't think lenders really pay that much attention to it.

They are certainly very interested in balance to limit ratio and balance to income ratio, but some of the lines of credit myself, friends and family have been approved for over the last year suggest that limit to income isn't factored in so much in to lenders calculations as much as I thought...

Agreed, a high balance to limit ratio is a good indicator that you may be overspending, so is looked down on. Can't think of any reason that a high balance:limit would ever be looked on favourably.