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Credit_2_SS10.key - Credit continued When am I in trouble...

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Credit continued When am I in trouble? What is the maximum I should be spending on credit payments? Credit Ratios Debt payment to disposable income Debt payments Disposable income = .16 - .20 Example Kellogg Co. $40,000 gross income Payroll taxes -$8,000 Disposable income $32,000 net income Monthly income /12 Monthly disposable income $2,666 Multiply by .16 $426. Multiply by .20 $533. I-Clicker credit review question Joe is asking Pat to marry him on Valentine’s Day next month. What item would be the most appropriate to place on his credit card? A. Flowers B. Dinner C. Ring Credit Bureaus Equifax Transunion Experian
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Credit Bureau data Fair Isaac and COmpany FICO Credit Score 550 600 650 700 750 800 850 50% FICO Score 35% Payment History 30% Amounts owed 15% Length of credit history 10% Taking on more debt? 10% Types of credit used Payment History 35% Pay your bills on time. Types of credit Credit cards Retail cards Installment loans Mortgages Late or missed payments Amounts Owed 30% How much is too much?
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