Credit Capacity: Definition, Ratios & Examples

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

A person with which of these DTI's is most likely to get a loan?

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access

1. What does D/E stand for?

2.

Calculate Sue's DTI.

She has a mortgage payment of $700, a car payment of $300, and credit card payments of $400 each month. Her monthly income is $4,000.

Create your account to access this entire worksheet
A Premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

What is credit capacity? See what you know about this concept and the meaning of D/E by using the quiz and worksheet any time you would like.

Quiz & Worksheet Goals

Complete these tools to figure out how much you know about:

  • Calculating DTI
  • A ratio that looks at the total liabilities or total debts
  • Finding D/E and what D/E stands for
  • Percentage of DTI that would most likely help with getting a loan

Skills Practiced

  • Information recall - access the knowledge you have gained about finding D/E
  • Interpreting information - verify that you can read information about what D/E stands for and interpret it correctly
  • Reading comprehension - ensure that you draw the most important information from the lesson on credit capacity

Additional Learning

Explore the lesson named Credit Capacity: Definition, Ratios & Examples so that you can learn more about this topic. Goals you'll get to complete any time include:

  • See what credit capacity refers to
  • Review examples of finding DTI
  • Identify the formula for D/E
Support