Quote:
Originally Posted by Pizza
I strongly disagree with Cecil on Open credit
Despite having a zero balance on revolving credit like a credit card or a Line of Credit, it will play a major factor in debt service ratio.
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Depends on the financial institution.
We don't worry about the unused, open Line of Credit, unless the available credit is substantial.
Then we only worry about it depending on history, debt serviceability, and overall character of the borrower.
Credit adjudication is a lot a grey area and few black and whites.