@ddamage wrote:
Hello fam,
Probably a dumb question but I'm gonna ask anyways.
Does DTI play a roll in credit card decisions besides our FICO scores?
Thanks.
Absolutely. Especially when it comes to CUs. I have to avoid any credit from CUs because of how they calculate SL payments. Most often they do not care what I actually pay, just what the computer pops out. They managed to calculate my SL payment as $3375/mo on $135k worth of SLs. My actual payments are $5/mo, but since I cannot prove the monthly payment amount for the life of the loans (recertify annually), it was a no-go amd they went with the original calculation!
One CU even set monthly payments for CAs. I have a $105 medical collection and they calculated that as $25/mo *for life* and added it towards my DTI lol apparently the computer cannot/ will not calculate payments for less than $25/mo. So for every unpaid CO/CA, etc., they may calculate a monthly payment for it, even if it is downright outrageous, but again it depends on the CU and I can only offer my experiences. That does not mean they all work the same.
If you have a very large amount of SL debt and not enough income to offset them, I would save the HPs and steer clear of credit unions.
