(35% or less)
Relative to your income before taxes, your debt is at a manageable level. You most likely have money left over for saving or spending after you've paid your bills. Lenders generally view a lower DTI as favorable.
Opportunity to improve
(36% - 49%)
You're managing your debt adequately, but you may want to consider lowering your DTI. This could put you in a better position to handle unexpected expenses. If you're looking to borrow, keep in mind that lenders may ask for additional eligibility factors.
(50% or more)
With more than half your income before taxes going toward debt payments, you may not have much money left to save, spend, or handle unexpected expenses. With this DTI ratio, lenders may limit your borrowing options.