Writer: Eric Bank
Editor: Lillian Guevara-Castro
Reviewer: Ashley Fricker
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Key Takeaways
Having a high debt-to-income (DTI) ratio can make it challenging to find a loan. These lending networks specialize in helping borrowers who have high existing debt:rn
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MoneyMutual is our top choice for connecting with a vast network of lenders willing to look past a high DTI for smaller, short-term funding.rn
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24/7 Lending Group is our pick for borrowers looking for higher loan amounts.rn
Lenders often consider your debt-to-income ratio when deciding whether you can comfortably take on another loan. Your DTI is calculated by dividing your total monthly debt payments by your gross monthly income.
It generally includes housing payments, credit cards, student loans, auto loans, and other debts, but excludes routine expenses such as utilities, internet, and cellphone service.
A high DTI can limit your options, but some lenders consider additional factors, including your income and credit history. The loan-matching services below can help you compare potential offers from lenders that work with borrowers across a range of credit and financial circumstances.
Personal Loans for High Debt-to-Income Ratio Borrowers
These free loan-matching services connect borrowers with networks of lenders. If you qualify and accept an offer, you may receive funding as soon as the next business day.
Requirements vary by lender, but applicants generally must be at least 18, live in the U.S., have a checking account, and provide valid contact and income information.
1. MoneyMutual
- Short-term loans up to $5,000
- Online marketplace of lenders
- Funds available in as few as 24 hours
- Simple online form takes less than 5 minutes
- Trusted by more than 2 million customers
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| Up to $5,000 | Varies | Varies | See representative example |
The MoneyMutual network provides personal loans ranging from $250 to $5,000. To be eligible, you must have a checking account and earn at least $800 per month.
Lenders use your checking account to deposit your loan funds and collect payments. MoneyMutual can still connect you with a lender even if you have challenges like a high DTI ratio, a low credit score, or past collections or bankruptcies.
- Personal loans from $500 to $35,000
- All credit types are considered and welcome
- Simple, no credit impact form
- Helping consumers since 2001
- 4.7 out of 5 Trustpilot rating with 2,000+ reviews!
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $35,000 | 5.99% – 35.99% | 60 Days to 72 Months | See representative example |
24/7 Lending Group may be able to connect you with a direct lender after you answer a few questions on its website. Doing so won’t hurt your credit, and you can easily compare loan offers in minutes.
While you don’t need a high income to qualify for a loan, you do need to show you can afford the loan payments. The network won’t run a credit check, but the lender you choose to work with may.
- Personal loans of up to $50,000
- All credit types welcome
- Receive funds in as little as 24 hours
- Fast approval decision
- Safe and secure application
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| Up to $50,000 | As low as 6.40% | Varies | See representative example |
Loan for Personal works with borrowers of all types, including those who may have a lot of debt compared to their income. Its network of lenders offers options to subprime borrowers, and the application process is quick and easy.
If you have bad credit, you’ll probably face higher interest rates, but you could still receive funding offers when you really need them. The money might even appear in your bank account by the next day.
- Loans from $500 to $10,000
- Get connected with a lender
- Simple form & quick funding
- Get your money as soon as the next business day, if approved
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $10,000 | 5.99% – 35.99% | 3 to 60 Months | See representative example |
Since 1998, BadCreditLoans.com has been matching lenders with borrowers who have high DTI ratios and bad credit. The lenders on its network provide personal loans of $500 to $10,000 with payment terms of three to 60 months.
The lenders recommended by BadCreditLoans.com will clearly disclose the actual loan interest rate and repayment period. Like all such matching services, there’s no obligation on your part, and the service is entirely free.
5. CashUSA.com
- Loans from $500 to $10,000
- Receive a loan decision in minutes
- Get funds directly to your bank account
- Use the loan for any purpose
- See official site, terms, and details.
CashUSA.com facilitates loans ranging from $500 to $10,000 from its network of high-DTI-ratio lenders. The loans have repayment terms of three to 72 months.
To secure a loan, your after-tax income must be at least $1,000 each month. Once you meet this criterion, a lender will outline the loan terms, including interest rates and fees. We love the CashUSA.com website because it offers valuable insights on a variety of financial topics.
- Small personal loans starting at $100
- Receive an approval decision in as little as 2 minutes
- Funds can be deposited into your account in one business day and used for any purpose
- No hidden fees
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $100 to $20,000 | Varies | Varies | See representative example |
SmartAdvances.com can line up a loan for you that ranges from $100 to $20,000, repayable in periods ranging from months to years. The allowable DTI will depend on the lender you’re matched with.
Applying for a loan and getting your funds is a breeze, with money ready for you as soon as the next business day.
7. Upstart
- Personal loans starting at $1,000
- Find loans you prequalify for, complete your application, and close your loan
- Loans for 300+ FICO Scores
- Checking rates doesn’t impact your credit score
- Powered by Credible
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $1,000 to $50,000 | 6.2% – 35.99% | 1 to 5 Years | See representative example |
Upstart states on its website that a borrower’s DTI — excluding rent/mortgage payments — must not exceed 45% if the applicant resides in Connecticut, Maryland, New York, or Vermont, and 50% in all other states, of projected pre-tax income.
Rent or mortgage payments are typically the biggest expense for most people, so excluding that from the DTI calculation allows for a higher allowable DTI. Plus, you’ll need to ensure there are no current delinquent accounts on your credit report and fewer than six inquiries in the past six months to qualify.
8. Avant
- Personal loans of $2,000 to $35,000
- Compare rates in 2 minutes without affecting your credit
- Best for low origination fees for bad credit
- 550 minimum credit score required
- Powered by Credible
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $1,000 to $35,000 | 9.99% – 35.99% | 24 to 60 Months | See representative example |
Avant may be able to offer you a loan of $2,000 or more, depending on your ability to repay your debt. One source reports that Avant allows a maximum DTI ratio of 70%. You can enter your information on Avant’s website to see what you may be approved for with no cost or obligation, nor harm to your credit score.
Avant partners with WebBank to issue loans to people who may not qualify elsewhere. Potential fees include a nonrefundable administration fee and late/returned payment fees.
Is Debt Relief Worth Considering?
If your DTI ratio is too high to qualify for a loan (including a debt consolidation loan), a debt relief program could be an alternative worth exploring. These services can negotiate with creditors on your behalf to reduce what you owe, which may free up money for other expenses.
The process typically takes between 24 and 48 months, but it’s not without drawbacks. Because debt settlement requires you to stop paying creditors to force a negotiation, your credit score will drop significantly, and you could face late fees or legal action.
Still, if you have a lot of debt and want a fresh start (in a couple of years), it could be worth it. Here are a few options that are worth considering if you want help getting your debt under control:
- Requires $10,000 or more in credit card debt
- Free, no-obligation debt analysis
- Specializes in credit card and medical debt
- Also handles debt from personal loans, private student loans, lines of credit, and collections
- Does not handle IRS, utility, federal student loans or mortgage debt
- Long-term program to relieve debt over 24-48 month period
- See official site, terms, and details.
| Better Business Bureau | In Business Since | Free Consultation? | Reputation Score |
|---|---|---|---|
| A+ | 2009 | Yes | 9.5/10 |
National Debt Relief can help if you owe at least $10,000 in unsecured debt. It has helped more than 100,000 borrowers pay off more than $1 billion in unsecured debt over the last 18+ years.
The company offers a free debt analysis to see whether you would benefit more from a consolidation loan or some other type of debt relief. The company handles debts arising from credit cards, medical costs, private student loans, and personal loans, but not IRS, mortgage, or federal student loan debt.
- 100% confidential, no-obligation consultation
- Specializes in unsecured debts over $10,000
- In business since 2000
- Options for debt settlement, consolidation, and tax debt
- Get a 100% free, personalized savings estimate from a debt professional
- See official site, terms, and details.
| Better Business Bureau | In Business Since | Free Consultation? | Reputation Score |
|---|---|---|---|
| (No Grade) | 2000 | Yes | 9.0/10 |
CuraDebt offers debt counseling and other services to consumers with high unsecured debts. It has helped more than 180,000 customers since its founding in 2000.
CuraDebt doesn’t directly offer debt consolidation loans. Instead, they provide completely confidential consultations about your consolidation loan options and debt relief, including tax debt. Their debt experts stand ready to assess your unique needs and recommend the best path forward, including ways to lower your monthly payments.
- Toll-free assessment: 1-855-299-9573
- Minimum $10,000 in debt required
- Learn about your debt relief options
- AFCC accredited member
- Resolve debts in as little as 24 to 48 months
- $5 Billion in debt resolved – #1 in America
- See official site, terms, and details.
| Better Business Bureau | In Business Since | Free Consultation? | Reputation Score |
|---|---|---|---|
| A+ | 2002 | Yes | 9.5/10 |
Freedom Debt Relief specializes in debt relief services, including debt consolidation assistance. The company works with an external lender to provide debt consolidation loans to qualified customers with at least $10,000 of existing debt.
The company has helped more than 600,000 clients resolve $5+ billion in debt since 2002. Freedom Debt Relief doesn’t handle collateralized debt, but rather concentrates on debt from credit cards, medical bills, personal loans, and other unsecured debt.
Can I Get a Personal Loan with a High DTI Ratio?
You can find personal loans through private lender networks, including the ones we’ve reviewed. These networks work with all kinds of borrowers, from people with bad credit to those dealing with high DTI ratios.
In other words, whether you have too much debt or a low credit score, your less-than-perfect handling of debt is not automatically disqualifying.
That being said, you should understand how debt affects your credit scores. You may be surprised to learn that your income isn’t part of your credit report, and, therefore, doesn’t figure into your credit score.
Indeed, you can have a high credit score and a high DTI ratio, or a low score and ratio. However, the most likely scenario for consumers with low credit scores is to have an uncomfortably high DTI ratio.
Paying down debt lowers your credit utilization ratio (CUR), which is the amount you owe compared to your credit limits. Since your CUR makes up 30% of your FICO Score, lowering it is one of the fastest ways to improve your credit.
| FICO Score Factor | Percentage of Your Score |
|---|---|
| Payment History | 35% |
| Amounts Owed | 30% |
| Credit History | 15% |
| Credit Mix | 10% |
| New Credit | 10% |
If your DTI is so high that lenders won’t approve your loan applications, you can consider a secured loan in which your home or car serves as collateral. Secured loans are much easier to obtain, as they put the lender at much less risk.
In fact, opting for a secured loan to consolidate your other debts can help you cut down on your monthly payments and possibly your interest rate. However, be cautious — secured loans can have serious consequences if you default, as you might lose your collateral, like your home or car, through foreclosure or repossession.
Defaulting will definitely impact your credit score, as it will be reflected on your report for up to seven years. Over time, it’s important to manage your income and expenses wisely so you have extra cash each month to reduce your debt.
What is a Good DTI Ratio for a Personal Loan?
Every lender has its own rules, but a DTI of 36% or lower is generally considered “good.” While some lenders may approve people with a DTI up to 45% or 50%, keeping your ratio under 36% is the best way to get a lower interest rate.
To understand why lenders focus on that 36% mark, it helps to look at how home loans work. When you buy a house, lenders split your DTI into two different parts:
- Front-end ratio (Housing only): This looks at how much of your income goes just toward your home (like your mortgage payment, insurance, and property taxes). Usually, lenders want this to stay under 28%.
- Back-end ratio (All your debt): This looks at how much of your income goes toward all your bills combined. This includes housing, auto loans, credit cards, and student loans. Lenders like to keep this total at 36% or lower.
When you apply for a personal loan, lenders only care about your total debt (the back-end ratio).
A mortgage is a secured loan, meaning the bank can take the house if you stop paying. But a personal loan is unsecured, meaning there is no property backing it up.
Because personal loans are a bigger risk for the lender, keeping your total debt at 36% or lower proves you aren’t overwhelmed with bills and can safely handle the new payments.
If your DTI is over 45% or 50% and you are struggling to get approved, you might want to look into a secured personal loan. These require you to put up something you own (like your car) to help lower the lender’s risk so you can get approved.
How Can I Lower My DTI Ratio Quickly?
This is where debt consolidation can be incredibly helpful. If you can consolidate high-interest debt into a single loan with a lower interest rate or a longer repayment term, your required monthly payment will decrease.
Because your DTI ratio is based strictly on your monthly debt obligations, not your total overall debt, lowering your monthly payment instantly lowers your DTI ratio.
Here’s an example DTI calculation. Notice that these are all monthly payments; the balances of personal loans, credit cards, or mortgages don’t come into play:
| Monthly Debt | Monthly Income | ||
|---|---|---|---|
| Rent | $1,000 | Salary | $3,300 |
| Car Payment | $175 | Side Hustle | $200 |
| Credit Card | $75 | Misc. Income | $150 |
| Total Monthly Debt | $1,250 | Total Monthly Income | $3,650 |
| DTI Calculation: $1,250 / $3,650 = 0.34 or 34% | |||
Keep in mind that debt consolidation isn’t without drawbacks. If you pay less each month without a decrease in interest rate, your loan will take longer to pay off and likely cost you more in interest.
Once you decide on a consolidation loan, make sure to avoid taking on new credit until it’s fully paid off. Getting trapped in a cycle of debt can lead to bankruptcy, but facing your debt directly will quickly improve your DTI ratio.
If you have unused assets you can cash in, you may be able to make a dent in your current debt. Perhaps you have a valuable stamp or coin collection gathering dust or an antique or art piece you’d be willing to sell. Some folks may decide to downsize their homes to lower their monthly bills.
Whatever steps you can take to economize on your monthly expenditures can help you pay down your debt. We also created this interactive tool to help you create a customized debt payoff strategy based on your situation:
The other half of the equation is your monthly income. Can you increase it?
If you need extra income, you might consider a side hustle, such as freelance work, Uber driving, or Airbnb hosting. You can also find plenty of work-from-home options, including writing, graphic design, programming, or bookkeeping. Or, you could try asking for a raise at your current job.
By directing any extra income toward paying down your debt, you can significantly enhance your financial health and improve your chances of qualifying for a personal loan.
Can I Get a HELOC With a High DTI Ratio?
A home equity line of credit is unlikely with a DTI above 43%. Lenders need confidence that you have the financial capacity to pay your debt as agreed. This is particularly important with any home loan that uses the property to secure the loan, as is the case with a HELOC or home equity loan.
If you stop making your monthly mortgage payment, HELOC payment, or home equity loan payment, the mortgage lender will foreclose on your home, and you will face eviction.
In addition to potentially losing your home, your credit score will plunge, making it extremely difficult to find a new place to rent. And you likely won’t qualify for another mortgage for several years.
That is why secured loans that leverage your home are difficult to qualify for with a high DTI — things can get really messy when borrowers default on home loans. And it is in the best interest of both you and the lender to ensure you aren’t taking on a payment you can’t afford.
Improving DTI Can Lead to More Approvals
We’ve reviewed several sources of loans for high debt-to-income ratio consumers. The loan matching and debt relief services in this article can help you obtain loans despite a high DTI ratio, either directly or through credit counseling.
It’s easier to secure a personal loan if you first pay down some of your debt and lower your DTI ratio. You can also improve this ratio by increasing your monthly income, perhaps by getting a raise, starting a new job, or taking on a side gig.
By cutting back on monthly expenses, you might be able to reduce your current debt and keep it low.
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