Highlights:
- Debt-to-credit and you can obligations-to-money percentages may help lenders assess the creditworthiness.
- Your debt-to-borrowing from the bank proportion get impression their credit scores, while you are obligations-to-money percentages don’t.
- Loan providers and you may creditors will pick a reduced loans-to-borrowing from the bank proportion if you’re trying to get borrowing.
Regarding credit scores, credit score and you will credit history, you have got read terminology for example “debt-to-money ratio” and you will “debt-to-borrowing from the bank proportion.” Exactly what carry out these types of words imply, and even more importantly, just how will they be different? Continue reading “What’s the difference between your debt-to-credit ratio and your DTI ratio?”