topic Re: Debt-to-Income Ratio Question in General Credit Topics

Debt-to-Income Ratio Question

Vulcan1 — Fri, 31 Jan 2020 23:08:06 GMT

When calculating debt-to-income income ratio the CBs use my mortgage payment as I understand they should. They don't take into consideration that my wife also contributes to the mortage but assume I pay 100%. Shouldn't they consider her contribution when considering DTI and vise versa? Not a big deal, just curious.

Re: Debt-to-Income Ratio Question

Brian_Earl_Spilner — Fri, 31 Jan 2020 23:26:32 GMT

They don't include her income because if she loses her job or becomes unable to work, you will be the only one paying that bill. They're calculating for worst case scenario.

Re: Debt-to-Income Ratio Question

jamie123 — Fri, 31 Jan 2020 23:53:35 GMT

The credit bureaus do this because everybody has an individual score, there isn't a "combined" score. Now lenders on the other hand, will almost always determine DTI using all household income as long as both people are applying for the loan or credit.

Re: Debt-to-Income Ratio Question

Brian_Earl_Spilner — Sat, 01 Feb 2020 01:56:10 GMT

@jamie123 wrote:
The credit bureaus do this because everybody has an individual score, there isn't a "combined" score. Now lenders on the other hand, will almost always determine DTI using all household income as long as both people are applying for the loan or credit.

When I worked at chase, we did both. Everyone on the loan, and individual

Re: Debt-to-Income Ratio Question

Vulcan1 — Sat, 01 Feb 2020 13:12:48 GMT

So her DTI would reflect the full amount of the mortgage also?

Re: Debt-to-Income Ratio Question

Nomad3 — Sat, 01 Feb 2020 14:47:43 GMT

Do you file separately or jointly?
I thought if you file jointly they have to include both incomes?

Because if they 4506T your taxes they get the combined income?

Re: Debt-to-Income Ratio Question

RobertEG — Sat, 01 Feb 2020 16:11:50 GMT

The credit reporting agencies do not calculate debt to income ratio.

Income is not reported to the CRAs, and they additionally only are aware of debt that has been reported to them.

What are you referring to as the debt to income ratio that is calcuated by the credit bureaus?

Re: Debt-to-Income Ratio Question

Anonymous — Sat, 01 Feb 2020 19:26:47 GMT

The banks will use the info from CB's to calculate DTI. Hence min payments on all CC, auto, loan, mortgage etc.

Re: Debt-to-Income Ratio Question

Anonymous — Mon, 03 Feb 2020 11:28:11 GMT

I was going to ask the same question, credit bureaus do not calculate DTI or have income information, as RobertEG said.

Only lenders do this.