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New Member
forester
Posts: 2
Registered: ‎09-29-2010
0

High Debt to Income ratio and married

Currently, I am carrying two vehicle loans, three credit cards, and a personal loan on my credit.

 

Let me break the numbers down...

 

I currently make a little more than $24,000 a year

 

Auto Loan #1 is $18,900 with $7000 of negative equity...:smileysad:

Auto Loan #2 is $9,700 and has postive equity but is the family vehicle

Credit cards total amount is $2,635

a personal loan of $3,524

 

My wife makes about $36,000 a year and currently has a school loan of $10,000 and a credit card of $1,300.

 

Her credit was rough in the past but we have been working hard to clean it up.

 

We have been trying to get a personal loan to consolidate the debt but of course nobody will loan money to someone with bad credit.

 

All of our bills are in good standing but my debt to income ratio is so high that it keeps my credit score in the 500's.

 

Other than keep paying like we are does anyone have any suggestions for us?

 

Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009
0

Re: High Debt to Income ratio and married

 


forester wrote:

Currently, I am carrying two vehicle loans, three credit cards, and a personal loan on my credit.

 

Let me break the numbers down...

 

I currently make a little more than $24,000 a year

 

Auto Loan #1 is $18,900 with $7000 of negative equity...:smileysad:

Auto Loan #2 is $9,700 and has postive equity but is the family vehicle

Credit cards total amount is $2,635

a personal loan of $3,524

 

My wife makes about $36,000 a year and currently has a school loan of $10,000 and a credit card of $1,300.

 

Her credit was rough in the past but we have been working hard to clean it up.

 

We have been trying to get a personal loan to consolidate the debt but of course nobody will loan money to someone with bad credit.

 

All of our bills are in good standing but my debt to income ratio is so high that it keeps my credit score in the 500's.

 

Other than keep paying like we are does anyone have any suggestions for us?

 


 

Hello and welcome to the forums.

 

Income is not part of a credit score so your debt to income ratio is not what is keeping your scores down. But DTI is one of the factors looked at when applying for credit.

 

* Do you have any negative items, i.e. late payments, charge offs, collections, etc.? All those can hurt a score.

 

* What is your credit card utilization? You figure that by dividing yout total current revolving balances by the total available credit. High utilization can damage a score.

 

* Do you have a short credit history? Do you know your AAoA (Average Age of Accounts)?

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work


New Member
forester
Posts: 2
Registered: ‎09-29-2010
0

Re: High Debt to Income ratio and married

Thanks for the reply! Yes we went through a rough patch about 4-5 months ago where we were late on two my credit cards and they were reported. I guess we just have to wait long enough to get away from those late charges. We still can't figure out why my wife's credit score is so bad unless my credit is reflecting on her's even though we have no joint accounts.
Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009
0

Re: High Debt to Income ratio and married

 


forester wrote:
Thanks for the reply! Yes we went through a rough patch about 4-5 months ago where we were late on two my credit cards and they were reported. I guess we just have to wait long enough to get away from those late charges. We still can't figure out why my wife's credit score is so bad unless my credit is reflecting on her's even though we have no joint accounts.

 

Another suggestion is to pull the credit reports you can get for free once a year at annualcreditreport.com if you haven't done it recently. Both you and your wife need to do this. Look at all of the reports closely for any errors. Also you'll know for sure what kind and how many derogatories each of you might have.

 

Make sure you truly have no joint accounts. The car loans are not in both your names? Possibly a mortgage?

 

May I ask where you got your scores? I ask because many. many sites will sell you "credit scores" but they are not FICO credit scores. No one has been able to buy their own Experian FICO score since February of 2009. Creditors can pull Experian and also there is a CU in Pennsylvania that supplies that information to it's members only. You can only buy true FICO scores at a few places. One place is here at myFICO. I suggest you do an internet search for "myfico discount codes" to save a little money. You can also purchase your Transunion score at www.transunioncs.com. At www.equifax.com EQ will still sell you an EQ FICO score but they make it very hard to find.

 

Recent late payments are a real score killer. Were they just 30 day lates? Or did it progress to 60 and 90 day lates or worse?

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work


 

 

 

 

 

 


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