Highlights:

• Debt-to-borrowing and you may personal debt-to-income percentages will help lenders assess your own creditworthiness.
• The debt-to-credit ratio could possibly get effect their fico scores, while financial obligation-to-income rates do not.
• Loan providers and loan providers desire come across a lower obligations-to-borrowing from the bank proportion while making an application for credit.

In terms of fico scores, credit history and you can credit file, you really have heard terminology such as for example “debt-to-money ratio” and you may “debt-to-borrowing ratio.” Exactly what perform this type of terms imply, and even more importantly, exactly how are they additional? Continue reading →