Debt ratio is just as important as good credit score. My credit scores are 737 (Experian), 810 (Equifax) & 808 (TransUnion). But my loan officer told me that equally important was the fact that I have no debt; no mortgage (rental), no car payment, no student loan, no child support … no debt of any kind whatsoever and it has been this way for nearly 5 years.
Thus combining with good credit score, I easily qualified for a loan with the absolutely lowest rate.
I had feared that being debt-free may hurt my credit (especially that I pay off my credit cards every month and never let the banks collect interest fees) but it actually helped. Go figure.
