Posts tagged Debt To Income Ratio
DTC: Debt to Credit Ratio in Relation to Home Loans

Your debt-to-credit Ratio (DTC), sometimes known as your credit utilization ratio, is a value that expresses the relation between the amount of credit you have used and your credit limit. DTC is often expressed as a percentage; the higher the percentage, the closer you are to reaching your credit limit. DTC is an important factor in many financial transactions, the most important of which is being one of the factors that helps determine your credit score.

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DTI: Debt to Income Ratio in Home Loans

DTI, or debt-to-income ratio, is a measurement that banks and other lenders use to compare an individual’s debt payments to their overall income. They usually use this as a way to determine someone’s predicted ability to repay future debts. You can calculate DTI by dividing your total monthly debt (recurring expenses only), by your gross monthly income.

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