Car Insurance Reviews

Debt-to-Income Ratio for Car Loans: What to Know

Your debt-to-income ratio is a percentage that represents your monthly debt payments compared to your monthly gross income. Auto lenders use this ratio, also known as DTI, to judge whether you can afford a loan payment. Whether you have a good debt-to-income ratio for a car loan is up to the lender, but generally, the lower the better.

what is a debt-to-income ratio?

The concept of debt-to-income ratio is simple: monthly debt divided by monthly income. but there are two types of dti relationships. auto lenders will look at your dti back-end, but we’ll explain both:

Reading: Debt to income ratio for car loan

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button