How do you determine your Debt To Income Ratio

JMills · ‎11-07-2013

I heaar this a lot , does anyone have a formula and please explain me the overall process in how it is calculated.

Thanks in Advance

Starting Score: EX: 705 EQ: 711 TU: 750 01/06/2014
Current Score: EX: 673 EQ: 673 TU: 643 05/06/2020

Last App: 05/06/202020 / In the Garden Until: 12/31/2024

Desired Scores EQ 800 EX 800 TU 800

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mxp114 · ‎11-07-2013

Read this for good insight: http://learn.bankofamerica.com/articles/managing-credit/keeping-your-debt-load-manageable.html

DTI calculator:http://www.bankrate.com/calculators/mortgages/ratio-debt-calculator.aspx

injustifiiable · ‎11-07-2013

It's your monthly recurring debt divided by your monthly income.

For this, they usually just consider the minimum payments on credit cards here.

Say you owe $1500 a month and make $4000 a month. DTI would be 37.5%. (1500/4000 = 0.375 x 100 = 37.5)

RobertEG · ‎11-07-2013

FICO scoring is based on balance to CL for revolving credit, and balance to loan amount for installment credit.

Total debt (which includes unreported accounts) and income are unknown to FICO, and are not scored.

Percent util of revolving credit is weighted much higher than balance remaining on installment loans, and is the primary scoring factor.

Debt to income is evaluated separately by creditors, usually for higher principal requests for credit, such as mortgages, and goes beyond FICO risk analysis.