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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?

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%.

Sub: #1 posted on Wed, 09/03/2008 - 10:31

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