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Debt Analysis

A quick overview of the debt record, monthly income and the debt-to-income (DTI) ratio



My Debt Analysis

Debt analysis shows the percentage of the monthly income you entered that you’re using to pay your debt (as listed in your credit report or reported by you). This is called a debt-to-income ratio. Lenders tend to view lower debt-to-income ratios more favorably because they’re often seen as an indicator that the borrower has a better capacity to repay their debts.
A quick overview of the debt record, monthly income and the debt-to-income (DTI) ratio for the consumers to conveniently manage their budget. Debt Analysis automatically capture and synchronize the debt record listed in the credit report whenever consumer refresh his credit report data. It allows consumers to add or edit the payment each creditor per month, add other regular monthly payment such as rent and living cost etc, and input their monthly income such as salary, interest and income from rental property.
By analyzing the monthly income and monthly payment, Debt analysis show the total debt and DTI ratio, and categorize the DTI ratio into 4 rankings: Very Good (0%-19%), Good (20%-39%), Fair (40%-59%), Poor (60%-100%).

debt analysis chart

Debt-to-Income Ratio

Having a lower DTI is good because lenders view you as having better capacity to repay your debts. Also, it is an indiciation that you have the ability to handle more debt, if needed.
A low DTI along with good credit health, are both considered very favorable by lenders and often entitle you to receive favorable interest rates and in some cases provides less collateral.
A high DTI is not considered favorable by creditors, lenders, insurers, landlords and employers while evaluating your credit health.

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