Debt to Income Ratio?

Anonymous · ‎11-20-2014

I was recently denied on an application for a secured credit credit card because my debt to income ratio was too high. He wouldn't tell me what the requirements are for that number. Anyone out there know? He said it's a federal guideline,

Anonymous · ‎11-20-2014

As far as I know, there isn't a "federal" guideline for DTI for credit cards. The CSR you talked to probably didn't know himself so that's why he gave you the garbage about it being a "federal" guideline to cover up for his lack of knowledge.

"Federal guideline" sounds much more official than "I don't know, that's just what the computer in front of me says"

But generally speaking, a DTI of 35% is about the max you should have.

coldnmn · ‎11-20-2014

More than likely an excuse to deny you. The link below is a good option for a secured card. It reports to the credit bureaus and no credit check. The drawback it doesn't unsecure but having it for 6 months should open doors for unsecured cards. Good Luck with your credit journey.

https://www.sdfcu.org/emv-creditcards

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bronxbomerss2 · ‎11-20-2014

I can't speak for every lender but for the CU i work for when we do a secured card we don't care about D/I because we are securing your limit with YOUR money. your D/I could be 100% and that wouldn't matter. Again, other lenders may vary but a general guideline is 50% max for a typical unsecured card but we can always go above for certain borrowers if we feel the borrow warrants the higher D/I limit.

Anonymous · ‎11-21-2014

Thanks for the info. I wondered what the heck he was talking about. I was asking for a $500 secured card and I had the money in my savings account. He said I had one credit card with a big monthly payment which was increasing the ratio. I looked at my credit report and I had one credit card turned over to collections and it listed my balance as the monthly payment. It's very frustrating. I'm trying to rebuild my credit and now have another inquiry on my credit report. I'm afraid to apply for any others because I can't afford another inquiry on my credit report.