Debt to Income and Payment to Income Ratios
Tips on how to determine ratios for debt to income and payment to income
Understanding the way lenders compute the insurance rates determines if you need the basic requirements.
Before you apply for the back credit auto loan, the first thing you should do is to determine your income ratio.
- You can start calculating your income ratio by adding up all your monthly bills including minimum credit card, mortage or rent utility payments, and any other payments.
- Once you get your totals, divide this amount by your gross monthly income.
- What you are left with determines whether the company is giving you better credit car loan.
For example, if your gross amount income is $3000 your insurance payments should not exceed 15%.
Always find an insurance company that gives you the best deals for a new or used car.