Posted on: 24th Nov, 2011 08:23 pm
Hello there. Can anyone help me know that if my cards are all at a $0 balance, will they use a 0 for that part of the DTI calculation or use the "minimum payment" for that?
Hi Guest!
Welcome to forums!
As far as I know, the creditors/lenders will use $0 while calculating your DTI. They won't use the minimum payment while calculating the debt to income ratio.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, the creditors/lenders will use $0 while calculating your DTI. They won't use the minimum payment while calculating the debt to income ratio.
Feel free to ask if you've further queries.
Sussane
A zero is used for revolving accounts with no balance to calculate DTI
If you have a $0 balance on all your credit cards, then your minimum payment should be $0 too.
Is the $0 balance being presumed since you pay off credit card balance is paid in full each month? There is a timing differance in what's shown on the credit report. If the credit report shows a balance (i.e., you haven't yet been billed and therefore have not paid off), the minimum balance will be used. Exception is mandatory PIF card, e.g. some American Express cards.
Welcome Guest,
As far as I know, as you don't owe any balance amount on your credit cards and as you pay off the debts in full, the lender will consider $0 while calculating the DTI.
As far as I know, as you don't owe any balance amount on your credit cards and as you pay off the debts in full, the lender will consider $0 while calculating the DTI.