Blog Category: Debt-To-Income Ratios

credit cards

But I Pay Off My Credit Cards Monthly

Some clients get a bit frustrated that minimum monthly credit card payments are counted against them in their debt ratios. They feel if they pay off their credit card bills every month no payment should be counted against them. First, the underwriter can’t assume that the client pays them off every month. Second, if you are spending about $3,000 every month on your credit cards for example, assume you usually pay that amount off every month. And the minimum monthly payments are $150 a month, but you pay off the balance each time. It seems pretty fair if you are spending $3,000 a month to only count $150 a month against you in your debt ratios.

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