 TITLE: How Does My Income Affect My Credit Limit? CONTENT: Do Lenders Look at Income to Determine Credit?\n----------------------------------------------\nMost lenders do look at an applicant's income when determining their credit limit. Creditors want to feel confident that you have the ability to repay your debt obligations without any issues, and knowing your income helps with that.\nYour income is not among the information that's included on your credit report, and the way you provide it to a lender can vary depending on the type of credit. If you're applying for a credit card, for example, the income amount you put on your signed application is usually what the creditor will use to help determine your credit limit.\nLenders sometimes go a step further and require that you verify your stated income. This is common with auto loans and mortgages. You may be asked for recent pay stubs or tax returns to confirm your employment and earnings. These details help lenders determine your debt-to-income ratio (DTI), which measures how your debt obligations relate to your earnings. A borrower with a high income is less impressive to a lender if they are deep in debt.\nTo figure out your DTI, simply divide your total monthly debt by your gross monthly income—the lower your percentage, the better. Many lenders prefer a DTI below 36%. A lower DTI paired with solid income could unlock a higher credit limit. END