Your debt to income ratio (DTI) is a key component of how healthy your credit is. It has no effect on your actual credit score, but lenders take it into consideration when it comes to applying for a mortgage or other major loans.
Below are several steps to help you keep your Debt to Income Ratio in balance. Here are several steps to help eliminate Credit Card Debt: - Pay Off the Highest Interest Rate Card First - Don’t Use Your Cards, and if you must pay them off monthly - Get Organized, understand what goes in and out with the mindset that you can’t spend more than comes in - Set a Budget, understand what needs to be paid and what you CAN afford - Request a Lower Interest Rate.
Debt to Income Ratio. AllYou 11/10. Credit utilization=debt-to-credit ratio. How much credit you're allowed & how much you've used. Accounts for up to 30% of your credit score. The lower the ratio, the better. i.e. $200/month on card & limit is $400, your utilization=50%. To improve & lower utilization, ask to increase your credit limit, Don't close cards as credit limits on unused cards count,