Credit Utilization Ratio vs. Debt-to-Income Ratio: What’s the Difference?

Credit utilization ratio and debt-to-income ratio can both have an effect on whether you get approved for a loan or credit card. But only credit utilization affects your credit score. Your credit utilization ratio (sometimes called balance-to-limit ratio) is a measure of how much credit you’re using compared with how much you have available. For example, let’s say...

The article Credit Utilization Ratio vs. Debt-to-Income Ratio: What’s the Difference? originally appeared on NerdWallet.

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