For A general rule creditors usually follow the percentages below when they are looking to grant you credit approval.

If your debt to income ratio is less than 10% this is the best range for obtaining credit. With less than a 10% debt to income ration you are in great financial shape. Keep up what your doing to stay within this range

If your debt to income ration is between 10% and 20% you are still in a good range where creditors will see you as a potential candidate for credit. With this range you should be able to get your ratio down to less than 10% if you keep up what you are doing. Maybe paying off some of your debt and making a budget plan can assist you.

If your debt to income ratio is between 20%-35% you are starting to get into a questionable level with the creditors. They will start to take a look at your take home income and monthly debt payments that you have. You may need to supply the creditor with documents to show your take home pay. In this range you will need to take a good look at your spending habits. Try and decrease your debts and increase your income. A credit counseling company like ours may be the solution for you to regain your financial stability.

If your debt to income ratio is greater than 35% you are then considered high risk and your chances of obtaining credit is very slim at best. At this percentage creditors will consider that your take home income is not enough to support your current debt payments and monthly bills. You need help, and need a professional debt consolidation service like our to assist you in getting on the right track financially

Your debt to income ration goal should be anything less than 20% once it goes over 20% your credit worthiness becomes questionable.

To fix your debt to income ratio you can increase your monthly take home pay and decrease your monthly debt payments.

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