How much does your credit score actually affect your ability to lend money? In this video, we explore how DTI, or debt to income ratio, might actually be just as important as credit score.
Debt to Income Ratio: Why it Matters
Perhaps a more accurate and important metric to pay attention to is DTI, or your debt to income ratio. Debt to income ratio, in simple terms, is the amount of debt you carry compared to your income, and whether that’s manageable. If your credit score is good, but your paycheck is tied up monthly in recurring payments, lenders see you as a risk.
Struggling with balancing out your DTI? Contact PDS today!
