Debt-to-income ratio (DTI)
Also known as: DTI
Your monthly debt payments divided by your gross monthly income. Lenders use DTI to assess how much new debt you can afford.
Full definition
The debt-to-income ratio (DTI) is your total monthly debt payments divided by your gross monthly income, expressed as a percentage. Most personal-loan lenders prefer DTI under 40%, with the most competitive APRs reserved for borrowers under 30%. DTI is one of the two main affordability signals lenders use alongside credit score.
- Written by
- Get Advance Loan Editorial Team
- Reviewed by
- Compliance Review
- Published
- January 15, 2026
- Last reviewed
- May 22, 2026
- Credit scoreA three-digit number (typically 300 to 850) summarising your credit history. Lenders use it to predict the likelihood you'll repay.
- FICO scoreFICO is the credit-scoring model used in roughly 90% of U.S. lending decisions. Scores range from 300 to 850.
- VantageScoreVantageScore is a competing credit-scoring model jointly developed by the three major credit bureaus. Also runs 300 to 850.
- Credit reportA record of your credit history maintained by the three U.S. credit bureaus. You're entitled to one free copy per year from each bureau.
- Soft credit inquiryA credit check that does not affect your credit score. Used for pre-qualification and rate-shopping.
- Hard credit inquiryA credit check that may lower your credit score a few points and remains on your credit report for up to 24 months.
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