How does having a lot of debt affect my ability to get approved for new credit?

Lenders look at more than your score. They weigh your debt-to-income ratio (monthly debt payments divided by gross monthly income) and your credit utilization to judge whether you can handle more debt. High balances raise utilization and hurt your score, while high total payments raise your DTI, so even with an okay score you can be denied a mortgage or loan if too much income is already committed to debt. Many mortgage lenders want total DTI at or below 43 percent, and lower is better for the best rates. Paying down revolving balances helps on both fronts at once. Check where you stand before applying with the Debt Payoff Calculator at wealthserene.com/tools/debt-payoff.