Mmastodon BusinessPersonal Finance first seen 22 h ago, last 18 h ago, peak #4

Subscriptions don't count toward traditional debt-to-income ratio

Original: October kickoff: your subscriptions don't count toward your traditional DTI ratio — that's calculated from your credit r

Personal finance commentary circulating in October clarifies that subscription payments such as streaming services do not factor into a borrower's traditional debt-to-income ratio, which lenders calculate from credit report obligations. However, a growing number of lenders now supplement this with cash-flow underwriting, reviewing actual bank transactions to assess spending patterns. Cash-flow underwriting can flag discretionary spending separately, meaning everyday purchases may still influence lending decisions even when DTI appears healthy.

Why now: Rising interest rates and tighter lending standards have made borrowers curious about exactly what lenders look at when approving credit.

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Evidence

• October kickoff: your subscriptions don't count toward your traditional DTI ratio — that's calculated from your credit report. But a growing number of lenders now also review actual bank transactions (cash-flow underwriting), which can flag discretionary spending separately.… · vetros

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