Highlights:

• Debt-to-borrowing and you can debt-to-money rates might help lenders assess the creditworthiness.
• Your debt-to-borrowing from the bank ratio could possibly get effect your own credit scores, when you find yourself financial obligation-to-earnings percentages do not.
• Lenders and you can loan providers choose to look for a lower life expectancy loans-to-borrowing proportion whenever you are trying to get borrowing from the bank.

With regards to credit ratings, credit rating and you will credit reports, you have got read terms instance “debt-to-earnings ratio” and you can “debt-to-credit ratio.” Exactly what do this type of terms and conditions suggest, and more importantly, just how will they be more?