Re: Is high credit card balance a red flag?

Re: Is high credit card balance a red flag? by P-Bone in WNY (NY) on June 27, 2012 @07:20

The problem with this case is that if they only make 3.5 times the rent gross and you can immediately assess a cost of 1 times the rent (1/4 gross income), that leaves them with only 2.5 times the rent. Is that enough to meet your screening needs?

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Re: Is high credit card balance a red flag? by Anna Mouse on June 27, 2012 @12:08	[ Reply ]

For every $1000 gross I would figure they were getting $700 after taxes and deductions. This is just an estimate. People may have more or less money taken out for insurance, 401K, and taxes. All depends on the person. If there is a concern with their debt to income ratio I would ask for proof in the form of a pay stub. I have gone to asking for more than 4.25X the rent in gross.

Re: Is high credit card balance a red flag? by outabout (CO) on June 27, 2012 @16:03	[ Reply ]

Actually all their debt, including rent, is about 1/4 of gross. The rent is $1950, other debt (using minimal payment of credit cards) total $1000, they make about 11,000 a month.