how does debt to income ratio differ from debt to limit ratio 
sometimes the debt to income ratio is lumped in together with the debt to limit ratio however the two metrics have distinct differences debt to limit ratio which is also called the credit utilization ratio is the percentage of a borrower s total available credit that is currently being utilized in other words lenders want to determine if you re maxing out your credit cards dti ratio calculates your monthly debt payments compared to your income whereby credit utilization measures your debt balances compared to the amount of existing credit you ve been approved for by credit card companies the bottom linedebt to income dti ratio is the percentage of your monthly gross income your pay before taxes and other deductions are taken out that goes to paying your monthly debt payments lenders use your dti ratio to determine your borrowing risk a dti of 43 is usually the highest ratio that a borrower can have and still get qualified for a mortgage however lenders generally seek ratios of no more than 36 a low dti ratio indicates sufficient income relative to debt servicing and it makes a borrower more attractive 