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annienyc
LIF Adult
Member since 10/06 1347 total posts
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HELOC & DEBT/INCOME Ratio
Does anyone know if a Home Equity Line of Credit would count AGAINST our debt to income ratio?
We are not currently using our HELOC at all - $0 balance.
We were just turned down for a car loan - first time EVER rejected for anything and we have excellent credit history so I'm wondering what is up.
I know there has been this recent tightening up due to all the sub-prime loans that are now going into default, but we do not fall into this category at all.
I would rather not use our HELOC to purchase the car b/c the interest rate we have is variable and the terms are not the best.
Please help.
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Posted 4/15/07 6:20 PM  |
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sunnyplus3
:)
Member since 11/05 8749 total posts
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Re: HELOC & DEBT/INCOME Ratio
pull your credit reports ASAP to make sure something isn't wrong-possible identity theft.
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| Posted 4/15/07 6:34 PM |
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Re: HELOC & DEBT/INCOME Ratio
Yes it would... even if you don't have a balance. Maybe you have too much available credit. Try lowering your credit card limits, but not closing major credit cards. Where did you go for the loan? Did they tell you that you were regected because your dti was too high. Normally you are not rejected for that reason. The bank would just ask for a co-app.
Message edited 4/15/2007 6:42:58 PM.
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| Posted 4/15/07 6:42 PM |
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annienyc
LIF Adult
Member since 10/06 1347 total posts
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Re: HELOC & DEBT/INCOME Ratio
We were applying online from Capitol One (same place we have our current car loan). Got rejected almost immediately via an auto-response. They are supposed to send me a letter of explanation but I can't wait and I want a REAL response like NOW. The rep I spoke to on the phone said they don't have direct access to credit profiles and she can't see why exac we were rejected. She suggested debt/income ratio or outstanding debt.
We really do not have that much debt. Nothing that doesn't get paid off within 60-90 days.
The only thing i can think of is this darn HELOC.
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| Posted 4/15/07 6:50 PM |
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Re: HELOC & DEBT/INCOME Ratio
It may just be Capital One. Do they have good rates? Try a credit union if you belong to one. They have the best rates & if you apply in person the loan officer should be able to tell you what is hurting your credit. I'm thinking maybe it is just that bank. Honestly most banks do risk-based pricing. If your credit is good or bad they will give you the loan & just adjust the interest rate accordingly. Unless you are in collections for something, it just doesnt make sense...
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| Posted 4/15/07 6:57 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: HELOC & DEBT/INCOME Ratio
Posted by KerriSteve
Yes it would... even if you don't have a balance. Maybe you have too much available credit. Try lowering your credit card limits, but not closing major credit cards. Where did you go for the loan? Did they tell you that you were regected because your dti was too high. Normally you are not rejected for that reason. The bank would just ask for a co-app.
they wouldn't max out your HELOC and include it in your DTI. and lowering your limits will lower your credit score.
did you recently pay it off? it usually takes a while for the correct balance to be reflected on your credit report.
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| Posted 4/15/07 7:26 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
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Susan
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Re: HELOC & DEBT/INCOME Ratio
My dad just dumped his capitol one card because the interest rate jumped from 7.99% to 23%!!
I think they are having issues.
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| Posted 4/15/07 7:30 PM |
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Re: HELOC & DEBT/INCOME Ratio
He have a large balance on our HELOC and have gotten car loans without a problem.
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| Posted 4/16/07 6:33 AM |
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