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04-10-2013 04:49 PM
When lenders try and figure out someone's DTI, and that certain someone they're looking at has say $6000 in CC debt, would it look better if all that was on 1 card or say spread out over 5 cards?
04-10-2013 05:24 PM - edited 04-10-2013 05:26 PM
Thanks for the reply.
I know it's for monthly payments and not total balance.
But if they look up your credit, and see $6000 in total CC debt, which looks better for your monthly payments?
I guess maybe I should have specified this was in regards to a HARP refi.
When they don't know the monthly payment, and they try and figure it out, or let's say the DU software tries to guesstimate the monthly payments, which is better, all $6000 on 1 CC, or spread it out over 5 CC's?
Say if you have a total of 20,000 CL's over the 5 CC's.
I mean if it's all on 1 card, well then your payment could easily be $300 a month.
But if you have it over 5 cards, well then the payment could easily be only $30 a month. So in reality that seems like it would look better since the payments are smaller and less.
So which looks better to the lender?
04-10-2013 05:43 PM
It's all going to depend on whether your monthly payments (for the same balance in total) are less spread out or on one card.
04-10-2013 05:57 PM - edited 04-10-2013 05:57 PM
Thanks for the reply.
So which would be better, or which would look better to the lender? Transfer all the balances onto 1 card?
Or leave em spread out?
04-10-2013 06:02 PM
04-10-2013 06:07 PM
Well when getting quotes from lenders for a HARP refi, I've been told my DTI is too high. I call them up and give em my personal info.
Then when they look up my credit report and see my CC balances, that's when I get turned down.
So I'm trying to pay it down within the next 6 months or so.
But in 6 months I'm going to have maybe $6000 in debt left. So that's why I'm wondering which is better. All on 1 card? Or spread out?
So since all they have to go by is my CC balances, how in the hell can they tell what my minimum payment is just by looking at a CC balance?
Doesn't make sense.
04-10-2013 06:30 PM
04-10-2013 06:32 PM - edited 04-10-2013 06:35 PM
That i didn't know!
I just assumed it dodn't show them my monthly payments since when I look at my credit reports all I see is my balance for each card.
Thanks for the reply.
EDIT : I'll be damned!
If you look at your report and dig a little deeper it does show your monthly payment amount! HOLY CRAP!
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