Definition

Debt-to-income ratio divides your total monthly debt payments — mortgage, car, student loans, minimum card payments — by your gross monthly income. Lenders use it to judge how much new debt you can handle; under 36% is generally considered healthy and above 43% makes qualifying for a mortgage difficult.

1. Debt-to-Asset Ratio

   Your total debt divided by your total assets — a measure of leverage.
2. Annual Percentage Rate (APR)

   The yearly cost of borrowing, including interest and certain fees.
3. Credit Utilization

   The share of your available credit you are currently using.