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CreditKarmaUser21

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Lowering minimum credit card monthly payments to boost DTI for home loan?
Hello, I'm trying to boost my debt-to-income ratio before I get pre-approved for my home loan. Since the banks calculate DTI for revolving credit card debt based on the minimum of your credit cards, is there a way to get my credit card companies to lower my monthly minimum payments?

For example: if my credit card has a minimum monthly payment of $150.00, Can I ask the card company to lower that amount to say $100, $75, even $50? Will this cause a hard inquiry on my credit score or any derogatory marks? If my debit to income ratio is lowered by $75 or even $50 a month, I may be eligible for a higher loan amount.

FYI: I currently pay well more than my minimum payments and I'm not doing this because I'm in too much debt or because I'm unable to pay.

Please let me know your thoughts and/or experiences. Thank you!

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How about making it a goal to pay your cards in full every month?  Lowering the minimum payment (which they will not do, BTW) will just take you longet to get the debt paid off and cost you more in interest.  When you can properly manage your debts then you can qualify for a loan, maybe.

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My minimum payment does not impact my APR. I pay well more that my set minimum already.

For example: I currently have a credit card with a "minimum payment" as $75. I pay $175-$200 towards this card every month. If the credit card company is willing to change my "minimum payment" to $50, I will still pay $175-$200 per month. The difference it would make would be my mortgage lender will now only calculate that card as $50 per month, not $75. Every dollar I can lower my "debt" in the eyes of an underwriter, the more money I can qualify for.

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The only thing that you could do is to get your credit lines lowered and that would reduce the monthly minimum, but doing so may be a bad idea, as it will increase your utilization rate if you are carrying balances. If your current lines become an issue with debt to income when you apply for the loan, the lender will let you know and should give you an opportunity to close a card or two to meet their debt to income requirements.

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Lowering my credit lines would defit the purpose that I'm trying to achieve.

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