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Mar 1 2022

Lowering Debt-to-Income Ratios (DTI)

Debt-to-income ratios are just that: Ratios. DTIs are a percentage. Therefore any time you increase your available credit, your Debt-to-Income ratio will decrease. There are probably several different ways to lower them, but here are a few ideas to start with:

  1. Credit Line Increase
  2. Balance Transfer
  3. New Credit Line

 

Credit Line Increase

Credit line increases are probably the easiest method to lowering your Debt-to-Income ratio. So call your bank.

Balance Transfer

If you can’t obtain a credit line increase, consider which revolving accounts you have that can offset your DTI by transferring balances. You may even have a credit card offer, such as my current Capital One card, that offers zero percent interest for a period of time. This is a great way to lower your DTI on another account while also saving money in the long run!

New Credit Line

Credit cards can be great tools, so view them as such… financial tools, don’t use them for irresponsible spending habits. Maybe the first two options above are unavailable. Research what new credit card offers may give you more credit, which again lowers your DTI ratio. Remember that when you go to transfer balances, do not exceed a maximum of 50% on your new card.

Home Lending Help

Many factors affect credit scores, which in turn affects how much income is required to borrow a certain amount of money. The money amount you are allowed to borrow ultimately determines whether or not you can obtain a home loan. This is the qualification process for home lending. Remember, however, that whatever situation you find yourself in, there’s a Juicy Solution waiting for you. I’d love to speak with you to find out how I can help. Take a look around the website as well for more helpful tips.

 

www.fjsolutionsllc.com

DOWNLOAD | GUIDE TO HOME LOAN PROGRAM BASICS FOR MORTGAGE LENDING