how does debt affect your credit score

Infographic: Good Debts, Bad Debts & Your Credit

Did you know there is a good and healthy amount of debt a consumer can have? While there are several instances where debt can be in your favor, there are plenty where debt can be held against you too. Your debt to income ratio is one way your credit worthiness is weighted among lenders and is key to understanding how good or bad debt could be impacting your credit score.

With our helpful infographic, you can learn the difference between good debt, bad debt and how each can affect your credit in various ways.

difference between good and bad debt

This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.

Published by permission from, Inc., an Experian company.   © 2014, Inc.  All rights reserved.