How does a personal loan affect your credit score?

Your debt-to-income, or DTI ratio, is a measurement lenders look at to assess whether you can afford to take on the payments for a new personal loan. Calculating DTI involves taking your total monthly debt obligation and dividing it by your gross monthly income.

Depending on the lender and the type of personal loan you apply for, you may be subject to DTI limits. It’s best to check with lenders to see what you may qualify for before submitting an application. Considering that your payment history is a major factor in calculating your credit score, even one late or missed personal loan payment can place a negative remark on your credit report. In this case, it can lower your credit score.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Millions poised to get a better credit score after medical debt dropped from reportsMillions of Americans could see their credit scores increase by 25 points on average after the major credit bureaus eliminated unpaid medical collections under $500 from their credit reports. Credit agencies to wipe most medical debts from reports:
Source: YahooNews - 🏆 380. / 59 Read more »