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Understanding FICO® Scoring

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3rd325
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3rd325
Posts: 37
Registered: ‎06-05-2007
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Re: Conflicting issues

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‎06-06-2007 09:21 PM - edited ‎06-06-2007 09:22 PM

If I decline someone for DTI it mearly means that they, according to the guidlines established by my employer, can not afford the payment. In othe words my employer will not lend to them because even though they have steller credit chances are they will not make be able to make the payment and we will lose money.
 
An example would be: I had a cust who wanted a loan but their DTI was higher than I was comfortable with. I stippulated that I would approve it if  we paid off three credit cards bringing the DTI to 55%. The customer did not want to pay them off so I was forced to decline him.


Message Edited by 3rd325 on 06-06-2007 09:22 PM
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Registered: ‎03-12-2007
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Re: Conflicting issues
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‎06-06-2007 09:54 PM


3rd325 wrote:
If I decline someone for DTI it mearly means that they, according to the guidlines established by my employer, can not afford the payment. In othe words my employer will not lend to them because even though they have steller credit chances are they will not make be able to make the payment and we will lose money.
 
An example would be: I had a cust who wanted a loan but their DTI was higher than I was comfortable with. I stippulated that I would approve it if  we paid off three credit cards bringing the DTI to 55%. The customer did not want to pay them off so I was forced to decline him.


Message Edited by 3rd325 on 06-06-2007 09:22 PM
Okay!  So if one has a high DTI but it's not from cc's, might they be from high installment loan payments.  i.e.. student, auto and etc.
Credit Profile:
FICO 9: EQ 835 ~ EX 832 ~ TU 829 (05-13-2017)
FICO 8: EQ 821 ~ EX 810 ~ TU 819 (05-13-2017)
FICO 8 Bankcard: EQ 844 ~ EX 840 ~ TU 845 (05-13-2017)
Credit History: 29 years ~ AAoA: 14 years
Total available revolving credit: 157K ~ Cumulative Util: 4% and dropping fast
Inqs: 1 EX (new)
13 Total Accounts on Reports: 8 open, 5 closed. No open installment accounts (soon to change)
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3rd325
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3rd325
Posts: 37
Registered: ‎06-05-2007
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Re: Conflicting issues
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‎06-06-2007 10:03 PM

Yes!! I should have mentioned that earlier. DTI is seperate from credit scores. Although credit scores do affect DTI a customer is allowed. Typically, according to my employer's guidlines, a customer with an 800 will be allowed 50-55% DTI while a person with a 610 will only be allowed a max of 45% DTI.
 
Everything is situational though. I have approved DTI as high as 64%. The reason I allowed a higher DTI was because it was a 150k loan on a property worth over 500k and the customer had a mid 700 fico and an IRA with over 200k in it. Even though the DTI (monthly debt) was higher than normal the risk to the bank was rellatively low.
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