Debt-to-Income Ratio Crucial for Loan Approval

When you apply for a loan, lenders look at your debt-to-income (DTI) ratio to see if you can handle more debt.

This ratio shows how much of your income goes toward paying off existing debts.

A high DTI ratio means you have less money left for new loans or unexpected expenses.

While your credit score shows how well you've repaid loans in the past, the DTI ratio shows your current ability to take on more debt.

Lenders care about both, but the DTI ratio is crucial for loan approval.