Welcome to the third and final piece of the credit puzzle…
You’re just about to completely understand “How Credit Works” and gain an exact understanding of where your credit is right now. This will help you make your best choice to be debt free ASAP by understanding how each option to get out of debt will [...]
The second leg of my World-Famous “Three-Legged Stool” Analogy of “How Credit Works” is your “debt-to-income ratio”.
“DTI” as they call in the mortgage industry.
If you’ve ever gotten a mortgage or refinanced your home, then you know the mortgage folks are very interested in your debt-to-income ratio.
Remember, debt-to-income ratio is the amount of money that [...]
If credit is like a three-legged stool, then the first leg of your credit is your “payment history.”
Payment history is simply a record of how well you’ve made your payments; if you’ve been on time or if you’ve ever been late. Payment history is the most common factor people think of in regards to [...]
I’d like to give you my world famous “three-legged stool” analogy to help you forever understand credit easily.
There’s a lot of information out there about credit. You can get into a lot of complexities, but this little analogy is going to make it very simple to see where you’re at now, and how each different [...]