Debt to Income ratio
Date: Wed, 09/03/2008 - 10:16
Can anyone explain to me, in layman's terms, what exactly "debt to income ratio" means exactly? I have heard the term used and discussed but not ever really understood it?
How important is a Debt to Income ratio to the consumer, or is it just another tool that lenders use?
What is a "good" percentage?
How important is a Debt to Income ratio to the consumer, or is it just another tool that lenders use?
What is a "good" percentage?
Are you referring to utilization? The ratio of your credit limi
Are you referring to utilization? The ratio of your credit limits in relation to debt. It is one of the major scoring factors that FICO looks at. 35% and less is the utilization you should be shooting for. Same with your debt to income. Anything under 35%.
