Debt-to-income (DTI)
Debt, arrears & collectionsA ratio that compares your monthly debt payments to your monthly income.
Overview
DTI is commonly used in affordability assessments. A higher ratio can indicate that you have less room for new repayments.
Even with a good credit score, a high DTI can reduce borrowing options.
Why it matters
- It can affect how much you can borrow.
- It is used in mortgage and loan affordability checks.
- Reducing monthly obligations can improve DTI.
FAQs
Is DTI part of my credit score?
No. It is part of affordability checks rather than credit scoring.
How can I improve my DTI?
Reduce monthly debt payments or increase income. Avoid taking on new monthly commitments.
Related terms
Take control of your credit health
Get the complete credit toolkit — all features included.
Start building creditInstant setup. No credit check. Cancel anytime.