Between 40 and 45. Most lenders, nowadays, won’t lend if it is any higher.
Depends on what you are applying for. If you are talking a mortgage, your final debt-to-income ratio should be under 45% including the mortgage.
Whay I have learned from experience….run your credit line up to its limit..always make a payment plus more..the credit company, will all by itself increase your limit…..Be careful!!
I can not believe the people that answer this without actually reading your question.
For the best credit score you debt to credit ratio should be less then 30%.
This is based on your total debt divided by your total credit.
Say you have 5 credit cards with credit limits of $5,000.00 each for a total of $25,000.00 and outstanding balances of $7,000.00, your debt to credit ratio would be 28%.
But if you canceled 2 of those cards and lowered your total credit to $15,000.00 with the same balance your debt to credt ratio would rise to 50%.
Your score takes a hit when you exceed 30% another when you exceed 50% and another when you exceed 90%.
In case it wasn’t obvious, spifman was referring to REVOLVING credit, i.e. credit cards and Home Equity Lines of Credit. Not including car loans and mortgages.
December 21st, 2009 at 11:21 pm
I think you are referring to debt-to-income ratio & it is under 43%.