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DTI - Debt to Income ratio
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DTI - Debt to Income Ratio:The percentage of your monthly pre-tax income that is used to pay off debts such as auto loans, student loans and credit card balances expressed as a percentage. The higher the ratio, the more burden on the individual to repay their debt.
This is an important variable used by lenders to determining risk. If you have a high DTI, then you will probably have a bad credit score or a credit score that is dropping. Your debt to income ratio should not be any higher than 40% to your available credit on your unsecured debts.
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If you would like to know what your debt to income ratio is, or if you know it is to high, click here and complete the Debt Elimination form and you will reduce your debt and raise your credit score.
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