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How does your loan affect your co signers debt to income ratio?


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Wiki User
2015-07-15 19:06:06
2015-07-15 19:06:06

You and your co-signer are both responsible for the entire car payment, so the payment would be applied to their debt to income ratio just as if it would be if they were the only person on the loan.

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it is the same as if she was to be buying the car it looks the same on her cedit

Your cosigner's debt-to-income ratio would increase, since the debt would be reflected on their credit report the same as it shows on yours. Their debt-to-income ratio will not be restored until the loan is repaid in full. This can also reduce their credit score temporarily until the account is seasoned (2 years) and the debt balance is reduced to below roughly 30% of the original balance.


Related Questions

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Your debt-to-income ratio is your total monthly debt obligations divided by your total monthly income. Increase your income or lower your debt payments to have a more favorable debt-to-income ratio. How do the credit companies know your income?

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Yes, it will affect your debt to income ratio.

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A debt to income ratio calculator is used to measure your income against your debt to see if you can afford a loan.

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Yes. Your debt to income and available credit ratio is used to determine your credit score. You credit score is an indication to the finance company of your credit-worthiness.

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Your Debt/Income Ratio is simply your total monthly mortgage + installment + revolving debt payments divided by your total month gross income. eg. If your income is $4000 / month, your mortgage payment is $1000/mo, Auto loan is $500/mo, and total credit card minimum payments are another $500/mo, then your debt/income ratio is $2000 / $4000 = 0.5 (50%) In most cases mortgage lenders do not like debt ratios over 45%.

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