debt-to-income ratio
- A measure used by lenders that shows how much of an individual's monthly gross income is spent on paying debts like housing or credit card payments
- The bank calculated his debt-to-income ratio before deciding whether to approve his mortgage application.
- Her high debt-to-income ratio dissuaded the lenders from granting her the car loan.
- Maintaining a low debt-to-income ratio can help improve the chances of getting a better interest rate.
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