Debt to Income Ratio

stuart_62

I calculated this to be under 38% based on how advised to calculate this online but MSE Credit Club is still saying is too high despite me paying off a loan to get it to under 38%. MSE Credit Club obviously use a different calculation than is described online. Is there anyway I can find out how this is calculated by MSE Credit Club as this information is hidden from me?

[Deleted User]

It doesn't matter how the MSE club calculates it as lenders will have widely differing opinions on it and look at it in relation to your wider files.

Just get the debt down and the income up wherever possible. The lower the percentage the better.

stuart_62

That is what I am doing but it has no effect whatsoever. Working from home in the last year have been able to significantly reduce my debt but has little to no effect on my credit file. This DTI ratio seems to have no basis in reality but just some figure invented from thin air. My credit rating appears worse now than it did when I had a lot more debt.

[Deleted User]

The ratio IS an invented figure. That's the whole point of it - it has nothing to do with lending or your credit worthiness.

Lenders are looking at your debt, not any MSE numbers or your credit rating.

stuart_62

That maybe the case but I don't want to apply for any 0% balance transfer cards that they say I have little to no chance of getting based on some made up figure which is not the true DTI ratio

[Deleted User]

A search or two will do no harm.

But use eligibility checkers form the lenders themselves.

2021BJ

stuart_62 said:

That maybe the case but I don't want to apply for any 0% balance transfer cards that they say I have little to no chance of getting based on some made up figure which is not the true DTI ratio

So you're worried about being declined and your solution is to not apply, which gives you the same outcome as being declined i.e. no card?  Makes sense.

[Deleted User]

Sites like MSE earn commission from people using affiliate links so may well not offer you the full suite of cards if certain providers don't play ball with them (just as how some insurers are not on the comparison sites). The credit reference agencies don't lend you money so what they think of you, and the factors they use to score you, are largely immaterial. Stuff like debt to income ratio, credit utilisation etc are just gimmicks for them to push their score "improvement" services which you pay for (hence why they won't tell you what the exact details are). If your credit history is good e.g. paying card/loan on time every month, no defaults, no late payments etc then apply for an appropriate card direct on the card issuer site not via the credit club.