When you apply for a loan, lenders don’t just look at your credit score—they also look closely at your debt-to-income ratio, often called your DTI. This single number can determine whether you’re approved for a loan, how much you can borrow, and what interest rate you’ll receive.

At your credit union, we believe informed members make better financial decisions. Here’s a clear, simple guide to what your debt-to-income ratio is, why it matters, and how to improve your DTI quickly.

Borrowing money can open the door to life?changing opportunities—buying a car, consolidating debt, or financing a major milestone. But even small mistakes during the loan process can cost you money or hurt your credit score. Credit union lenders see these issues every day, and the good news is that most common loan mistakes are completely preventable.

Below are the top loan mistakes to avoid, plus practical tips from experienced credit union lenders to help you borrow smarter, protect your credit, and get the best possible loan terms.