Do you have too much debt in the eyes of lenders? One measure is your debt-to-income ratio. Some consider that number as important as your credit score, and it will be evaluated if you ask for a loan or additional credit. A low DTI ratio, which is generally less than 36, shows you have a healthy balance between debt and income. If it’s higher, you might consider lowering it by combining your debt into a single fixed-rate loan. Our Debt-to-Income Calculator can help you better understand how lenders might perceive your credit standing.
Debt-To-Income Ratio Calculator Definitions
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This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from ConsumerInfo.com, Inc., an Experian company. © 2015 ConsumerInfo.com, Inc. All rights reserved.