Creditkarma.com and Debt to income Ratio

[Anonymous]

I know that this is not officially part of FICO or even any so called FAKO scores but Credit karma  has a section where they analyze debt to income ratio.   They get the income figures from the individual but I have absolutely no idea how they calculate the monthly debt.  One might think that they add up the monthly debt payments but I can't get there using my mortgage payment, and any other payment that I can figure out for my HELOC and CC.

Just out of curiosity I was wondering if anyone knows their methodology.  I diud ask them but received a non answer.

[MarineVietVet]

I'm only guessing here but on credit reports the monthly payments are listed for all the accounts. Could TU be getting the amounts that way?

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
6/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
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[Anonymous]

Like I said the total they show bears no relationship to anything.  In my case we are only talking three accounts but I cannot replicate their numbers.

I was just wondering if anyone might have some insight.  It was a shot min the dark.

[RobertEG]

Total debt, total assets,  and total income are not in your cedit report, and thus not part of your credit scoring.

Sure, some credit decisions are based, with individual creditors, on information that they request from you about income, total assets, total liabilites, and these are usually only requested by higher-principal lendors, such as mortgage or auto lendors. If requested, this is confidential personal information that cannot be marketed to a "creditkarma."  And there is no way to post such info to your CR.

If they somehow provided your confidential information, aside from what is in your credit file, to others, such as someone called creditkarma, I think you have a case of serious breach of confidentiality.

I dont care as much about how they are using it as I am about their right to even have it.

[Anonymous]

Guys please read the post before you respond!

I already explained how they got that info  but the question is about how they are utilizing the info that IS in the credit report.

[MarineVietVet]

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@RobertEG wrote:

Total debt, total assets,  and total income are not in your cedit report, and thus not part of your credit scoring.

Sure, some credit decisions are based, with individual creditors, on information that they request from you about income, total assets, total liabilites, and these are usually only requested by higher-principal lendors, such as mortgage or auto lendors. If requested, this is confidential personal information that cannot be marketed to a "creditkarma."  And there is no way to post such info to your CR.

If they somehow provided your confidential information, aside from what is in your credit file, to others, such as someone called creditkarma, I think you have a case of serious breach of confidentiality.

I dont care as much about how they are using it as I am about their right to even have it.

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That's not what I said. I said the monthly payments for my accounts are in my TU report and Credit Karma is affiliated with TU. CK also lists my total balances very accurately. All the information on CK is very up to date and mirrors my own records. I just don't look at the score there.

I also don't look at the debt ratio feature so I can't comment further about why the OP's ratio doesn't match his own figures.

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
6/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score

[Anonymous]

I could be WAY off on this but I believe he was trying to repond to the original post and not your comment.

But this thread is really proceeding strangely  that's for sure.

[MarineVietVet]

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@Anonymous wrote:

I could be WAY off on this but I believe he was trying to repond to the original post and not your comment.

But this thread is really proceeding strangely  that's for sure.

---

LOL. Yes that happens from time to time. It's one of the drawbacks of the written word. It's hard to read someone's intent on a computer screen. 

I hope you get an answer to your question.

ETA: If I highjacked your thread I apologize.

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
6/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score

[Anonymous]

I would not worry too much about it.  Such is life on internet message boards.  Sometimes you get an answer right away and sometimes you just get people that wnat to comment ona side issue----sometimes legitimately---or that have not really read the original post.

In the ggrand scheme of things I don't really need thjis answer.  I was just trying to satisfy my own curiosity.  I will just consider it another unsolved mystery if finance, the internet or whatever.

[BungalowMo]

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@Anonymous wrote:

I know that this is not officially part of FICO or even any so called FAKO scores but Credit karma  has a section where they analyze debt to income ratio.   They get the income figures from the individual but I have absolutely no idea how they calculate the monthly debt.  One might think that they add up the monthly debt payments but I can't get there using my mortgage payment, and any other payment that I can figure out for my HELOC and CC.

Just out of curiosity I was wondering if anyone knows their methodology.  I diud ask them but received a non answer.

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I'm not sure what you mean by "you can't get there..."

Here's how I figure they do it.  Yes, we provide monthly income.  And depending on when you pull a fresh FAKO score, they will see in your report, the last payment amount you made on each acct.  For instance, even if you make 2 cc payments during the month prior to the last due date ...only the second payment is recorded (both are credited, obviously), so they assume that to be your regular monthly payment.  And all those collectively are your monthly debt.  But...just as any other credit pull you make, it is simply a snapshot in time & can be right on the money, or WAY off target!  

That is why this is not a factor in the FICO scoring system.  It's far too subjective.  You can have a 2k balance on a cc with a monthly payment of $40 minimum.  One month you happen to have 1k you can toss on that card.  FICO would never assume 1k per mo on this acct to be part of a normal monthly debt payment.

I hope that made sense!  Much of CreditKarma, for me, is merely entertainment.  I don't put much stock into their findings.  It's simply free entertainment.