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KNOWING MY ACCURATE DTI

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Regular Contributor

KNOWING MY ACCURATE DTI

Hello once again, I found myself wondering how a lender finds your dti? As I look on my credit report, no such thing is listed. I have an estimated guess on what it may be but I'm not sure if that what the lenders are looking at. Where can I find close to accurate or completely accurate stats to give myself a look at what the lenders see. I have myfico, WalletHub, and Experian. Does those places have that info?
CSP 17.8K
CHASE FU 7K
CONNS(SYNCHRONY) 10K
MY JEWELERS 5K
NEW COAST DIRECT 5K
REGIONS PLATINUM 4K
BBT CASH REWARDS 3.5K
BBT TRAVEL 3.5K
PFU(ELAN FINANCIAL) 2K
CAP1 QS1 1.5K(closed GONE)
DISCOVER IT 1K
KAYS 1K(closed GONE)
NFCU CASH REWARDS 700
CREDIT ONE 500(closed GONE)
OPENSKY 300(closed GONE)
DISCOVER(AU) 38.6K
CITI(AU) 12.5K
Score for Fico are: Ocr 2019 Util 20%
Eq= 673
Trans= 725
Ex= 669
Inquires in last 24mths(Aug19)
Eq= 15
Trans= 12
Ex= 17
Accounts in Last 24mth= 19 6mths= 8(Aug19) 4 accounts have been closed
Car Loan= 1
Installment Loans= 5
CC= 12
4 AU accounts for AAoA since I have so many accounts(lol)
(1)10yrs, (3)8yrs
17 REPLIES 17
Moderator

Re: KNOWING MY ACCURATE DTI

The CRAs do not supply income information to lenders, so DTI would never be listed.  Lenders calculate your DTI using the information on your credit report and the income information you have supplied them.

 

The formula is total of all monthly payments / (annual income/12)

 

For example, let's take someone with a $100,000 annual income who has a $2000 mortgage, $500 auto loan, and three revolving credit cards showing a minimum monthly payment of $35 each.

 

2605.00 / 8333.33 = 31.26% DTI


Message 2 of 18
Regular Contributor

Re: KNOWING MY ACCURATE DTI

Appreciate the info.....was mainly wondering if that's all they based it off but I was thinking the right thing.........thanks tho
CSP 17.8K
CHASE FU 7K
CONNS(SYNCHRONY) 10K
MY JEWELERS 5K
NEW COAST DIRECT 5K
REGIONS PLATINUM 4K
BBT CASH REWARDS 3.5K
BBT TRAVEL 3.5K
PFU(ELAN FINANCIAL) 2K
CAP1 QS1 1.5K(closed GONE)
DISCOVER IT 1K
KAYS 1K(closed GONE)
NFCU CASH REWARDS 700
CREDIT ONE 500(closed GONE)
OPENSKY 300(closed GONE)
DISCOVER(AU) 38.6K
CITI(AU) 12.5K
Score for Fico are: Ocr 2019 Util 20%
Eq= 673
Trans= 725
Ex= 669
Inquires in last 24mths(Aug19)
Eq= 15
Trans= 12
Ex= 17
Accounts in Last 24mth= 19 6mths= 8(Aug19) 4 accounts have been closed
Car Loan= 1
Installment Loans= 5
CC= 12
4 AU accounts for AAoA since I have so many accounts(lol)
(1)10yrs, (3)8yrs
Message 3 of 18
Regular Contributor

Re: KNOWING MY ACCURATE DTI

What if you use your credit cards to meet a minimum spend on a new card, or just charge to put usage on an existing card? For example if you charge 2 Louis Vuitton bags and pay them off in full before the statement cuts. Is that sort of thing calculated in DTI? 

 

 







Message 4 of 18
Community Leader
Senior Contributor

Re: KNOWING MY ACCURATE DTI

@grower1, your bag purchase wouldn't affect DTI. When DTI is calculated, minimum credit card payments are used. Because there's no debt, there's no minimum payment.

Message 5 of 18
Regular Contributor

Re: KNOWING MY ACCURATE DTI

Thank you @HeavenOhio!

 

I always wondered how it worked and how DTI would be calculated if I ever applied for a loan. 

 

I've never had any loans (car/morgage/personal). I do have about 10 cards, AZEO so I let a small amount report on one. I have about 52k in revolving credit lines + Amex Gold 30k POT. 

 

I don't pay any utilities. I'm on my lease, for monthly rent ($2,500) but I don't really pay that either, although I have in the past to meet spend requirements. My spouse pays for car payments, insurance, groceries etc.. Maybe my DTI is zero or really low. 







Message 6 of 18
Legendary Contributor

Re: KNOWING MY ACCURATE DTI

Your credit report is never used as the source for calculation of a debt to income ratio.

Income is not in your credit file, and debt only includes those creditors or businesses that have voluntarily chosen to report their account to the CRAs.

 

Credit reporting/scoring uses similar ratios, but they are not debt to income ratios.

Scoring of revolving debt uses the ratio of current balance divided by credit limit, and installment debt calculates the ratio of current balance divided by initial loan amount.  Those ratios are sometimes incorrectly referred to as DTI, but they dont include either all debts of current income.

 

If a given creditor is using debt to income ratio as an approval or evaluation factor, such as it common with high principal amounts of credit, such as mortgages, the creditor will request disclosure from the consumer, usually in the form of a signed statement.

Message 7 of 18
New Contributor

Re: KNOWING MY ACCURATE DTI

experian has a DTI calculator when you log into it



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Message 8 of 18
Regular Contributor

Re: KNOWING MY ACCURATE DTI

@creds
Thanks for the info about Exp, I have a account with them but had to log in on desktop to see the dti chart. With my income it says I'm at 11%
CSP 17.8K
CHASE FU 7K
CONNS(SYNCHRONY) 10K
MY JEWELERS 5K
NEW COAST DIRECT 5K
REGIONS PLATINUM 4K
BBT CASH REWARDS 3.5K
BBT TRAVEL 3.5K
PFU(ELAN FINANCIAL) 2K
CAP1 QS1 1.5K(closed GONE)
DISCOVER IT 1K
KAYS 1K(closed GONE)
NFCU CASH REWARDS 700
CREDIT ONE 500(closed GONE)
OPENSKY 300(closed GONE)
DISCOVER(AU) 38.6K
CITI(AU) 12.5K
Score for Fico are: Ocr 2019 Util 20%
Eq= 673
Trans= 725
Ex= 669
Inquires in last 24mths(Aug19)
Eq= 15
Trans= 12
Ex= 17
Accounts in Last 24mth= 19 6mths= 8(Aug19) 4 accounts have been closed
Car Loan= 1
Installment Loans= 5
CC= 12
4 AU accounts for AAoA since I have so many accounts(lol)
(1)10yrs, (3)8yrs
Message 9 of 18
New Contributor

Re: KNOWING MY ACCURATE DTI


@TruSaintsFan wrote:
@creds
Thanks for the info about Exp, I have a account with them but had to log in on desktop to see the dti chart. With my income it says I'm at 11%

Be aware, I just went to check mine with my Experian account. I have 1 credit card reporting a balance, and 1 car payment. My total monthly debt should be no more than $450. Experian is saying $704. I went through and looked at all my open accounts one at a time. It's showing monthly payments on accounts that haven't carried a balance or even seen a charge in almost a year.






Message 10 of 18
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