The content is accurate at the time of publication and is subject to change.

Lenders and credit cards issuers look at your debt-to-credit (DTC) and debt-to-income (DTI) ratios to assess your creditworthiness. They prefer to see lower DTC ratio when you are applying for credit. When your DTC ratio is high (above 30%), it can signal to lenders that you're a riskier borrower who may have trouble paying back a loan.

The DTI ratio is considered when a creditor determines whether to lend you additional money and at what interest rate. The lower you DTI ratio, the less risky you appear to lenders.

When your DTC and DTI ratios are high, it will be hard to get approved for a new loan or a credit card. Even if you are approved for a new balance transfer credit card, the credit limit on your new card may not be high enough to pay off your entire credit card debt.

However, if you debt-to-income ratio is low, you can try getting a balance transfer credit card. If you are not approved for a new card, try contacting the issuer directly and ask for reconsideration. Explain your situation and what you need a new credit card for. It may help to get you approved. Same with the credit limit, if your new card has low credit limit, you can contact the issuer directly and ask for a higher credit limit. Again, explaining your situation may help you get a credit limit increase.

tags : Balance Transfers Good Credit Loans

Disclaimer: This editorial content is not provided or commissioned by the banks or credit card issuer(s). Opinions expressed here are the author's alone, not those of the banks or credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the banks or credit card issuer(s). Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult with the issuing bank of the card or account for terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are accurate as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.