Jump to content

Sign in to follow this  
MarvBear

Gross Monthly Income

Recommended Posts

Again, please pretend I am an absolute Newbie here.

 

I am not interested in Household Income or Total Household Income.

 

Can someone explain in clear and concise laymen terms what would be considered as "GROSS MONTHLY INCOME" for an individual completing a credit application.

 

Your responses would be appreciated

Share this post


Link to post
Share on other sites

ok newbie.

 

gross monthly income is your total income BEFORE ANY deductions for taxes 401k SS etc.

 

 

if you dont get paid bimonthly or monthly the easiest way to figure it out is

 

biweekly payroll

 

 

wage x 26 / 12 = gross monthly income

 

 

weekly

 

wage x 52 / 12 = gross monthly income

 

 

this is for base pay

 

 

bonuses, commissions shift dif are on top.

Share this post


Link to post
Share on other sites
Again, please pretend I am an absolute Newbie here.

 

I am not interested in Household Income or Total Household Income.

 

Can someone explain in clear and concise laymen terms what would be considered as "GROSS MONTHLY INCOME" for an individual completing a credit application.

 

Your responses would be appreciated

 

 

If I make 19.00 an hour, and work 40 hours a week, 40x19.00=760.00 a week.

 

760.00 x 4 (weeks in a month)= 3040.00 Monthly Gross Income, Thats What I make in 4 weeks or 1 month.

Share this post


Link to post
Share on other sites
Again, please pretend I am an absolute Newbie here.

 

I am not interested in Household Income or Total Household Income.

 

Can someone explain in clear and concise laymen terms what would be considered as "GROSS MONTHLY INCOME" for an individual completing a credit application.

 

Your responses would be appreciated

 

 

If I make 19.00 an hour, and work 40 hours a week, 40x19.00=760.00 a week.

 

760.00 x 4 (weeks in a month)= 3040.00 Monthly Gross Income, Thats What I make in 4 weeks or 1 month.

 

wrong..

 

760 x 52 / 12 = 3293.333333 a month.

Share this post


Link to post
Share on other sites

My middle name is neither Visa nor Mastercard, but for me, the meaning of "gross monthly income" for an individual completing a credit app would be:

 

The first number on your paycheck stub (Gross Wages)

plus

Cash tips or commissions if any (average of past year, if monthly)

plus

Child support or alimony if you have an order and you receive it on a regular basis, and if you desire to include it

plus

Gross rents, if you own rental property

plus...

 

(You get the idea.)

 

I would not (personally) include:

 

Gifts from parents, even if they arrive fairly frequently

A bonus, unless you can count on getting it every year

Roommate's income

Income from sales of illegal drugs or other contraband :-)

 

Rule of thumb: the number should be within shouting distance of the number you tell Uncle Same every April...

Share this post


Link to post
Share on other sites

the total amount a borrower earns each month, before any type of expenses or taxes are deducted from those earnings

Share this post


Link to post
Share on other sites

My husband gets paid biweekly so I figure our gross monthly income on the 26 week payday. So I would say that it is the total amount, before taxes or other items, that he is a paid. If he made $100,000 a year, I would say his gross monthly is $7692.31. Should we have additional income from rental homes or stocks I would also include that.

Share this post


Link to post
Share on other sites

A month is approximately 4.33 weeks. Ball you are cutting yourself short .33 weeks.

Share this post


Link to post
Share on other sites
My middle name is neither Visa nor Mastercard, but for me, the meaning of "gross monthly income" for an individual completing a credit app would be:

 

The first number on your paycheck stub (Gross Wages)

plus

Cash tips or commissions if any (average of past year, if monthly)

plus

Child support or alimony if you have an order and you receive it on a regular basis, and if you desire to include it

plus

Gross rents, if you own rental property

plus...

 

(You get the idea.)

 

I would not (personally) include:

 

Gifts from parents, even if they arrive fairly frequently

A bonus, unless you can count on getting it every year

Roommate's income

Income from sales of illegal drugs or other contraband :-)

 

Rule of thumb: the number should be within shouting distance of the number you tell Uncle Same every April...

 

 

First things first, unless you claim cash tips/commisions in taxes IT SHOULD not be included in a credit app. The reprocussions could be detrimental in way of accounts closing, CLD etc.

 

Also, if you include money from alimony/child support for a dependent of yours if the application asks for number of dependents, be honest or a financial review could lead to your ability to pay ratio being affected dramatically by this.

 

In addition, some apps (mostly installment loans) ask, in the fine print, that you DO NOT include any rental income. The reasoning behind this? Most leases with your rentor(s) are month-to-month or year-to-year, if the loan is greater than 12 months, you cannot guarantee tenancy throughout the entire life of the loan.

 

I consider gross monthly income to be the amount on tax returns (minus deductions if you are self employed) divided by 12. If you are not going to use tax returns, I would say it is either your monthly salary amount (or (biweekly salary x 26)/12), or twice a month salary x 26/12. If you are paid hourly instead of salary it would be, and work fourty hours per week it would be (hourly rate x 40 x 52)/12.

Share this post


Link to post
Share on other sites

I am working on a project here, I need specific information. I appreciate the on point comments so far.

 

This is very important to me, so I beg of you to keep is on target PLEASE. I have had to continually split off extraneous comments into another thread, which is very time comsuming with the board being as slow as it is.

 

Once again, I would request that the topic just specifically deal with the question as asked.

 

Please favor me in this small request.

Share this post


Link to post
Share on other sites

I'm used to doing the extra .3 (I didn'trealize it was .33)..so when I look at fi's paystub (he gets paid every 2 weeks), I'd get the total amount before any deductions---say it's $800 (just throwing out a number)

 

Then 800x2.3 (the extra 2.3 weeks in the month)=1840

 

So your gross would be 1840 a month.

 

Now if you were to just multiply by two I'd be $240 off the monthly gross income....Now, if it were a LARGER check, you can see the discrepancy would get larger.

Share this post


Link to post
Share on other sites
I'm used to doing the extra .3 (I didn'trealize it was .33)..so when I look at fi's paystub (he gets paid every 2 weeks), I'd get the total amount before any deductions---say it's $800 (just throwing out a number)

 

Then 800x2.3 (the extra 2.3 weeks in the month)=1840

 

So your gross would be 1840 a month.

 

Now if you were to just multiply by two I'd be $240 off the monthly gross income....Now, if it were a LARGER check, you can see the discrepancy would get larger.

 

 

Actually angeleyeskkhr your computations are inaccurate for my methods.

 

If paid biweekly, you take the GROSS (before any deductions) Amount and multiply by 26 to arrive at a yearly income.

 

Whatever that number is, you then would divide that number by 12 for a total gross monthly income.

Share this post


Link to post
Share on other sites
I'm used to doing the extra .3 (I didn'trealize it was .33)..so when I look at fi's paystub (he gets paid every 2 weeks), I'd get the total amount before any deductions---say it's $800 (just throwing out a number)

 

Then 800x2.3 (the extra 2.3 weeks in the month)=1840

 

So your gross would be 1840 a month.

 

Now if you were to just multiply by two I'd be $240 off the monthly gross income....Now, if it were a LARGER check, you can see the discrepancy would get larger.

 

The factor for biweekly pay is 26 / 12 = 2.166, not 2.3. There are 26 biweekly checks per year, and of course 12 months. So the answer in this case is $1733.

Share this post


Link to post
Share on other sites

I found this thread by googling (monthly gross income) and this thread was like the 5th link down!!!

 

What ever happened with your project Marv?

 

My pay is a little different.

 

I have my base pay which goes up Jan 1 of every year, every time you get promoted, and once you hit your even year mark (6 years or 8 years)

 

Then I have BAS or money for food. For 2009 its $323.87 and I get that every month. Goes up Jan 1.

 

Then there is BAH/OHA or money for housing. The amout you get depends on the area, your rank, and number of dependents (spouse, kids, etc)

 

 

I know what I will AT LEAST get every 2 weeks but it is impossible to know for sure. Heck you get paid extra if you go to some army school. Dont forget clothing allowance which is something like $540 this year. You get that once a year on your enlistment date (Mine is 28 August so I will see the $$ 1 Sept).

Share this post


Link to post
Share on other sites
Again, please pretend I am an absolute Newbie here.

 

I am not interested in Household Income or Total Household Income.

 

Can someone explain in clear and concise laymen terms what would be considered as "GROSS MONTHLY INCOME" for an individual completing a credit application.

 

Your responses would be appreciated

 

afaik, for salaried workers, 1/12 of your annual income/wages or your two biweekly paychecks before deducting payroll, income taxes and retirement (gross wages or income)

it's trickier for 1099 and self-employed applicants but I think a good guideline would be to take 1/12 of federal gross reported on the 2008 1040.

for mortgages it's different in that they use a two-year lookback within the same field, but for CC's I think it's common to use recent figures or figures from the previous year

Share this post


Link to post
Share on other sites
I found this thread by googling (monthly gross income) and this thread was like the 5th link down!!!

 

What ever happened with your project Marv?

 

My pay is a little different.

 

I have my base pay which goes up Jan 1 of every year, every time you get promoted, and once you hit your even year mark (6 years or 8 years)

 

Then I have BAS or money for food. For 2009 its $323.87 and I get that every month. Goes up Jan 1.

 

Then there is BAH/OHA or money for housing. The amout you get depends on the area, your rank, and number of dependents (spouse, kids, etc)

 

 

I know what I will AT LEAST get every 2 weeks but it is impossible to know for sure. Heck you get paid extra if you go to some army school. Dont forget clothing allowance which is something like $540 this year. You get that once a year on your enlistment date (Mine is 28 August so I will see the $$ 1 Sept).

 

 

lol It's crosslinked to the pinned credit app in the automotive section in case anyone needs an explanation of what Gross Monthly Income is.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  




  • Today's Birthdays

    1. Schmo
      Schmo
      Age: 40
  • Member Statistics

    • Total Members
      178,187
    • Most Online
      2,046

    Newest Member
    CrisFenix
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines