A young couple sitting at the kitchen table looking at bills.

When it comes to debt, there are all sorts of numbers that get thrown around. Interest rates, credit scores, fees. It can be dizzying. There are two terms that sound similar to each other and are often confused, but which are nothing alike. Those terms are debt-to-credit ratio and debt-to-income ratio. Let’s take a look at these two terms and see what they’re all about.

Debt-to-credit ratio looks at the relationship between the total amount of credit you have been offered, also known as your credit limit, and the amount of money you’ve borrowed so far. Basically, it’s the percentage of credit that you’re using. For example, let’s say you have a credit card with a limit of $2,000 and you’ve charged $500 on that card.

$500 / $2,000 = 0.25 or 25%. Your debt-to-credit ratio is 25%.

You can calculate this number for your total amount of debt (add up the balances on all your cards) compared [...]

Younger man holding a set of car keys.

When you have bad credit, lenders will need to look at factors other than your credit score to determine if you meet the eligibility requirements for a loan. For example, lenders want to know that you can afford the car you want to buy. At CreditYES®, we look at your monthly income to help determine your eligibility. You’ll need to earn at least $1,500 per month before taxes to qualify. But there’s a little more to it than that.

Your lender will also want to know how much of your income is already being used for debts. This is known as your debt-to-income (DTI) ratio. This would include such items as housing payments, student loans, credit card payments, and other loans. Your debt should ideally not use up more than 35% of your income each month. You can learn more about debt-to-income ratios and how to calculate them by reading our blog post about DTIs here.


5 Important Auto Insurance Terms To Know

Liability, Collision, Comprehensive, Deductible, Subrogation
Man who is frustrated rubbing his brow.

When it comes to car insurance, do you feel completely lost? It’s so full of jargon and insider-talk, how is a regular person supposed to understand? Well, although there are many terms you can leave to the professionals, there are a few you should know to know if you have the best coverage for your situation. We’ll walk you through five important terms you need to know.

Liability Coverage

This is the coverage that protects you if you cause an accident, hurt someone, or cause damage to property. If you are sued by another party, legal expenses may also be covered. The limits of coverage are broken down into two types – property damage and bodily injury – meaning the policy will pay up to the specific limits for the specific damage from the accident. It is required in almost every state and each state sets its own minimum. You can generally buy more coverage [...]

A vehicle that just got into an accident.

Getting into a car crash is scary and overwhelming. In addition to being unfamiliar with the process, there may be injuries and damages to worry about. While it doesn’t take most of the emotions away, knowing what to do can help ease the tension a bit. Here are some steps you can take when involved in an auto accident.

Assess the Situation

First, make sure that you and your passengers are okay. Then check on any others who were involved in the crash. If possible and it’s lawful in your area, move your car to a safer place. In some states, you must call the police immediately. In others, you can wait a bit. If you’re not sure, call and explain the level of emergency based on injuries and the movability of your car. The dispatcher can tell you if they’ll send someone right away.

Get Information

If the police arrive, they’ll handle gathering everyone’s [...]

Oil filler inside of the engine compartment of a car.

How often do you change the oil in your car? Do you do it every 3,000 miles like clockwork? Or do you follow the three-months rule? Or maybe you just wing it and get it changed every so often when you realize you haven’t done it in a while and your car feels funny.

A popular belief is that the oil must be changed in a car every 3,000 miles or three months, whichever comes first. However, this may not be necessary depending on the kind of car you have, where you live, and your driving habit. Instead of wasting time and money changing your oil more frequently than necessary, learn the best way to take care of your vehicle.

Is the Old Way Wrong?

The 3,000-mile/three-month rule isn’t necessarily wrong, it’s just outdated. If you’re driving a car that was manufactured earlier than the 2000s, you really do need to change the oil changed [...]