why is debt to income ratio important 
debt to income dti ratio is the percentage of your monthly gross income that goes to paying your monthly debt payments and is used by lenders to determine your borrowing risk a low dti ratio demonstrates a good balance between debt and income conversely a high dti ratio can signal that an individual has too much debt for the amount of income earned each month typically borrowers with low debt to income ratios are likely to manage their monthly debt payments effectively as a result banks and financial credit providers want to see low dti ratios before issuing loans to a potential borrower 