Example data table
| Score | Income (annual) | Debts (monthly) | Type | Loan | Term | Estimated APR | Decision |
|---|---|---|---|---|---|---|---|
| 790 | 2,400,000 | 50,000 | Mortgage | 8,000,000 | 20y | ~5.2% | Eligible |
| 735 | 1,800,000 | 65,000 | Personal | 500,000 | 5y | ~10.0% | Eligible/Review |
| 670 | 1,200,000 | 55,000 | Auto | 1,400,000 | 5y | ~10.5% | Review |
| 610 | 900,000 | 60,000 | Business | 700,000 | 4y | ~24.5% | Review/Not eligible |
| 545 | 1,500,000 | 85,000 | Personal | 600,000 | 3y | ~33.0% | Not eligible |
Formula used
When a co-applicant is enabled, a weighted score is used for pricing and tiering:
This is an illustrative weighting and may differ by lender.
DTI checks total monthly obligations relative to monthly income:
Lower DTI improves the score and payment capacity.
For fixed-rate payments, the standard amortization equation is used:
L is loan amount, r is monthly rate, n is months.
First, an allowed payment is derived from DTI and type caps. Then the loan amount is inverted from the payment:
Additional caps apply for income multiples and LTV (secured loans).
Points are summed across four components: credit (40), DTI (30), employment stability (15), plus LTV or residual buffer (15). Eligibility is based on the total score and hard-rule checks.
How to use this calculator
- Enter your credit score, annual income, and monthly debt payments.
- Select the loan type, desired amount, and term years.
- For auto or mortgage, add an estimated asset value.
- Optionally enable a co-applicant and provide their details.
- Click Calculate Eligibility to view results above.
- Use the download buttons to save results as CSV or PDF.
Score bands and pricing
Scores run from 300 to 850 and are blended when a co-applicant is added (65% primary, 35% co). Higher effective scores move you into better tiers and lower base APR assumptions. The risk score combines four components: credit (0–40), DTI (0–30), employment stability (0–15), and collateral or residual buffer (0–15). For example, a personal loan tiered “excellent” uses about 6.5% base APR, while “poor” uses about 26.0%, before affordability limits are applied.
Debt ratio pressure
The calculator evaluates post-loan DTI as (monthly debts + new payment) ÷ monthly income. Pointing is steep: DTI at or below 20% keeps 30 points, while 35% begins a slide, and 50% can drop DTI points to near zero. Tier caps also tighten: 45% for excellent, 43% good, 40% fair, and 37% poor.
Income and term impact
Affordability is driven by a payment ceiling that is the smaller of two limits: a DTI-based payment cap and a payment-to-income cap by loan type. Personal uses 15% of income, auto 18%, business 20%, and mortgage 28%. A final sanity check also limits max loan as a multiple of annual income: 0.50× personal, 0.80× auto, 2.00× business, and 4.00× mortgage, in this model. Term affects the payment size, but terms are also capped (7 years personal/auto, 20 business, 30 mortgage).
Collateral and LTV
For auto and mortgage, loan-to-value (loan ÷ asset value) adds “support points” and can constrain the maximum loan. Mortgage LTV caps range from 95% (excellent) down to 75% (very poor). Auto caps range from 100% down to 80%. Lower LTV typically improves both the decision label and recommended limit.
Practical improvement steps
Eligibility improves fastest when you lower monthly debt, increase verified income, or reduce the requested amount. A small down payment can reduce LTV and raise support points. If you are in “review,” try shortening the term to cut interest and stabilize DTI. Use the action list to prioritize the factor that most reduced your risk score for most borrowers.
FAQs
1) Does “Eligible” mean guaranteed approval?
No. It is a planning estimate based on your inputs. Lenders still verify income, pull credit reports, review collateral, and apply product rules, fees, and internal scorecards.
2) Why is my “effective score” different from my score?
If you add a co-applicant, the calculator blends scores (65% primary, 35% co) to approximate shared risk. Without a co-applicant, effective score equals your entered score.
3) What DTI should I target for better results?
Lower is better. In this model, DTI at or below 20% earns full points, while values above 35% reduce points quickly. Keeping post-loan DTI under your tier cap strengthens eligibility.
4) How does the term change my eligibility?
Longer terms reduce monthly payments, which can improve DTI, but they may increase total interest. The tool also caps terms by loan type, so extending beyond the cap will not improve results.
5) Why do auto and mortgage ask for asset value?
Those loans use loan-to-value (loan ÷ asset value). Lower LTV can add support points and may raise the recommended maximum. Higher LTV can trigger stricter caps and more “review” outcomes.
6) How can I improve eligibility before rechecking?
Pay down revolving debt, avoid new obligations, increase verified income, and consider a smaller loan amount. For secured loans, a down payment can lower LTV and improve the score breakdown.