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why do you ask for gross monthly income instead of net when calculating debt to income ratio
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lterrell
1 year ago
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My debt to income ratio is poor. I only have one financial obligation so I don't understand this.
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Asked by Chiluvr1228
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This is the number that credit agencies (or any potential creditor): they know how to adjust for taxes, etc. In order to get the debt to income ratio that they all live by, creditors use gross income in their calculations. CK is being consistent with the creditors by asking for this.
nathanmedic 1 year ago
Most lenders ask for the gross amount to give a standard metric.
AppleRules 1 year ago
Your net income can change based on items that are held out of your check, aka retirement health etc,perhaps you even donate to a cherity one month this would all change your net, but wouldn't reflect your actual pay. The more reliable measure is the gross, remember that credit reports are only updated when reporting occurs so if your net changes in a month it isn't likely to be updated on your report to reflect the change for some time. Your Gross isn't likely to change but one a year.
ncxlightning 1 year ago
I ask your gross income so that I will be rich. If I ask for your net income only, you will give me less money.
JackieCH 1 year ago