Are Credit Cards Always Included In Debt-To-Income (DTI) Ratios?

Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

Are Credit Cards Always Included In Debt-To-Income (DTI) Ratios?   It is not unusual for parents these days to co-sign for their children for such things as:

  • Car loans
  • Cell phones
  • Student Loans

It is also not unusual these days for a parent to assist their children in establishing credit, or providing them with a credit card when they go off to college.  The most common and quickest way to do so is to co-sign for a Credit Card for the child.  Depending on the credit card limit, Co-Signing for a Credit Card can have an even bigger impact on Debt-To-Income than car loans, cell phones, or student loans. 

Credit Cards are revolving debt, so anyone authorized to use the Credit Card can continuously use it, and impact the balance for an undetermined amount of time.  Unlike car loans, cell phones, or student loans which have an ending date, Credit Cards don't unless the main user of the card removes the authorize user or joint user from it.

So Are Credit Cards Always Included In Debt-To-Income (DTI) Ratios?   YES, as long as they continue to be a authorized user on the Credit Card, it will ALWAYS impact their Debt-To-Income Ratios.




 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or


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  1. Gabe Sanders 01/14/2017 11:50 PM
Mortgage / Finance
1st Time Buyers
Real Estate Rookie
Old Farts Club
debttoincome dti

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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for the enlightening information, George.  I am guessing that many folks are unaware of this.

Jan 07, 2017 04:57 PM #1
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

If you owe money  it goes against your credit and how much you can afford to pay per month

Jan 07, 2017 05:30 PM #2
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

In my family it went the other way.  My parents had never had a credit card and when they retired and tried to travel, they could never reserve a room in advance since they had no cards.  I had to co-sign for them

Jan 07, 2017 06:10 PM #3
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

George, This is something that most do not consider.  Aside from the impact on DTI - the child has open use of a credit card.  I learned that lesson when my son was in college ... it is best to just give kids a pre-paid card  

That's my story and I am sticking to it. 

Jan 07, 2017 06:23 PM #4
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi George - I am sure that many people don't even think about this one.

Jan 07, 2017 06:30 PM #5
Nathan Gesner
American West Realty & Management - Cody, WY
Broker / Property Manager

This is important for clients to know and far too many do not.

Jan 07, 2017 07:47 PM #6
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

George Souto I remember using that trick for my children - so that they can establish their credit history.

Once they were ready to 'fly', I removed them from authorized users of these cards.

Jan 07, 2017 08:26 PM #7
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

We gave our kids a card while they were in high school and college, to be used for school and emergencies only. Once they graduated the card came back to us. We never co-signed on anything because we encouraged limited debt and to try to pay cash (the Dave Ramsey approach). It has served them all well in life. 

Jan 08, 2017 12:28 PM #8
Alexander- Slocum
Premiere Property Group, LLC - Vancouver Washington - Vancouver, WA
Realty Team- Vancouver WA Real Estate

Great Info George.  We have many in our County that would otherwise qualify for the USDA loan but their DIT is out of spec with the program.  Any and all reasonable ways to remedy that are good to know and explore.  Thanks!  John and Kat

Jan 08, 2017 02:48 PM #9
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

More than once, I've seen the impact that occurs when a parent or other family member has co-signed, or provided a credit card for someone's use.  Good information, George!

Jan 08, 2017 04:59 PM #10
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Hi George -- forewarned is forearmed.  I always thought a class in basic money management should be included in the high school curriculum...maybe school districts don't have the "budget" for such things.   And then we wonder why...

Jan 10, 2017 07:51 AM #11
Sandy Padula and Norm Padula, JD, GRI
Realty One Group - Carlsbad, CA
Presence, Persistence & Perseverance

Thanks for the important information on this issue, George Souto Hope you and the Souto Family enjoy a pleasant Sunday!

Jan 15, 2017 07:07 AM #12
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Most Americans leave a balance every month and instead make the minimum payment offered .

Feb 25, 2017 06:21 PM #13
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