• Debt to income ratio's have nothing to do with credit scores. You can be turned down for credit with good credit if your debt to income ratio is around 45%
• The definition of debt to income ratio:
  Totally amount of reported  to a bureau Monthly Debt plus housing / divided by your total Gross Monthly Income.
• If have 3 credit cards for 300 a month total and one car loan for 400 and your rent is 750. That would be 1450 per month. 
   Now take your total gross income and divide that into the 1450. Lets say you make 4000 per month.
• 1450 / 4000 = .3625 or 36 percent 
  Most lenders will want your debt to income ration to be lower than 45 percent.
  If your go over 45 percent you will be turned down.
• 1rst Get my Free Credit Score plus credit history at Transunion Experian & Equifax as seen on AOL MSN YAHOO! CreditReport.com explains what is affecting my credit score so I know what to attack. Find out what my credit report shows what i have going out each month for reported monthly DEBT. 

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• A 771 would suggest my balance to credit limit ratio is very good (this is often confused with debt ratio's). If I am turned down for a car loan or a home loan, then this would suggest my reported monthly payments account for 45% or more or close enough to 45% that an additional obligation if granted would push you over the 45% debt to income ratio threshold. I have seen people get turned down for car loans over and over because they are a waiter, plumber or a self employed person who cannot prove by tax returns, 1099's or pay stubs that they can actually take on more debt than what is already reported to the credit bureaus. The banks also take into account some sort or monthly rent and utility figure that may not show on your credit reports.
• DEBT TO INCOME RATIO
   I can be turned down for "debt to income ratio" which has 50% to do with GETTING APPROVED but NOTHING TO DO WITH MY CREDIT SCORES.
   My reported monthly debt is must be less than 45% of my, "show me the stub" or, "two years tax returns" gross not net.
• Plus my credit needs to be good. Super high provable salaries and large down payments might overcome some bad credit.
   I will be turned down for new credit no matter what my score is if my debt to income ratio is above 45%. Even if I score a 700 771 772 773 774 775 776 777 778 779 800.
  If I no mortgage is reported most potential lenders will add a rent figure.
  More than 45% reported debt leaves too little to live on, and looks like bankruptcy is waiting. Believe it or not but people routinely get and use too much credit and they become trapped into a charge off, repo, late payments, judgment, bad check, hospital bill, electric bills. So unsecured credit card debt is the more dangerous than secured  car loan and home loan debt. They can reposes an asset and get some money back. Thus secured debt.
• This is why credit card companies who grant "unsecured credit" are careful at first.
• I have a lot of open credit I am not using and I am going to consolidate to 2 or 3 credit cards and a debit card. I am shooting for credit cards in the 40k total available and owe less than 10%. Right now I have about 8 or 9 cards. Before the year runs out I am going back to 2-3 cards, house loan, car loan, maybe 1 more, and all that food, water, venison wireless, electricity, gas and gas.

Get all 3 credit scores fast free and easy with GoFreeCredit
Check here, add up your monthly obligations
Divide that by your gross monthly income
Should come out to less than 45%

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• Debt to income ratio 45% or less 45% or more.. You should have no more than 44% reported monthly payment obligations to gross monthly pay. If your debt to income ratio is higher than 45 percent or gross monthly pay you will be turned down no matter how good your credit score is

• Debt to income ratio: Debt ratio: Monthly debt to gross monthly income. Turned down monthly debt to gross income ratio above 45%

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• Question 
   I have a A.R.M. coming due in July 08
  this is what I have
  1 mortgage never late for 3 years
  1 mortgage ( rental property never late 3 years )
  1 major credit card 3000.00 limit owe 1200.00
  1 truck haven't been late in 3 years ( 4 more payments to go)
  1 new truck ( 6 months never late)
  bankrupt. 9 years ago
  although I got a lot of things deleted a lot of credit card judgments my trans union score is 698, don't know husbands yet, waiting to pull his what kind of loan should I look for or will I even qualify for a loan to refinance? I am worried sick I have 6 months to go, trying so hard to reach 700 on fico, everyone says no new credit something about dept to ratio, the rental property is rented and I have a lease to show the mortgage company. thanks
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  if they are turning you down for a debt ratio it would be a DEBT TO INCOME ratio.
  The score is so high it must be dept to income ratio.
  No more than 45% owed per month SHOWING ON YOUR CREDIT REPORT against total gross monthly check stub tax return income.
  Past 2 years if self employed
  DEBT TO INCOME RATIO
  looks like your open credit is very good and your score reflects that 698
  I would dispute some of the older paid items and hope?
  A 698 SHOULD get you whatever you want.
  2 more points might help you a percentage point or less, but not much difference is there.
  
  so dispute some old stuff
  maybe pay the remaining four payments on the truck
  other than that? you look good

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