Dti on credit cards

[Anonymous]

Will be applying for an auto loan and was wondering how dti is calculated for credit cards. I usually pay off totally but some months I may have a $200 or $300 balance and that is what I will pay the following month. In the month I apply will this amount go towards dti? Should I pay minimum like $29 that month I apply? 

[SouthJamaica]

---

@Anonymous wrote:

Will be applying for an auto loan and was wondering how dti is calculated for credit cards. I usually pay off totally but some months I may have a $200 or $300 balance and that is what I will pay the following month. In the month I apply will this amount go towards dti? Should I pay minimum like $29 that month I apply? 

---

I think the debt is based on your monthly minimum payment based on the last reported balance, so the lower your reported balances the better as far as DTI goes.

You certainly should never pay just the minimum.

[LaneM818]

Scenario:  my mother is an auth user on my credit card with NFCU that has a balance, but now has her own credit card with them. I've just left her on as it didn't seem to do any harm but does show my balance on her credit report.

Question:   do car lenders calculate HER DTI with my credit card balance or min payment included?

i know mortgages include unless you show a year of on time payments by the primary holder but auto loans? If so, do I need to just remove her as auth user so it doesn't use my balance. Or will they subtract it out and I can leave it as is? Or?

I've hunted for info on this and can't find anything related to auto loans and auth user DTI calculated. Hope someone here knows.

[Thomas_Thumb]

First, DTI for revolving credit cards is based on minimum payment required. For example, a card with a $600 balance may list a minimum payment of $38. The $38 would be used.

Second, for a charge card with 1 month terms, the dti calculation is typically the statement balance but may be less if you have a POT feature.

Third, an authorized user has no obligation on card payments. Payment obligations are the responsibility of the primary card holder. Therefore if she is AU on one of your cards and the card has a balance, impact on her dti calculation is $0.

[LaneM818]

Thank you!