Betts' misbehavior on a Yarra River boat cruise saw him exiled from Visy Park along with teammates Andrew Walker and Ryan Houlihan and banned from NAB Cup action.
"It's been a real turning point for Eddie - there's no doubt about it," Ratten said.
"His GPS numbers are the highest they've been in his career, his sprint efforts, his repeat efforts - everything. I think out of a mishap or a bad choice, he's made some really positive steps."
Betts, 23, who will play his 100th AFL match against Essendon on Saturday night, admits it was a difficult chapter in his life, but one that he has benefitted from enormously.
"It was a big wake-up call for me," he said.
"It made me look at myself and say 'you only get one chance at AFL footy' and if you muck up you might not be here next year.
"It makes you have a good look at yourself."
Carlton was still dealing with plenty of hardships of its own when Betts arrived via the 2004 pre-season draft and, two wooden spoons later, he's thrilled to be part of the Blues as they embark on a new era.
"The buzz around the club now is great and hopefully we can play finals again this year," he said.
"It's been a long journey, but it's good to play 100 games - especially when I never got drafted [early on]. It's an honour and it will be good to play 100 games and get my name on the locker.
"You always dream of playing AFL footy and to play one game is a great experience, but to play 100 is just unbelievable. I'm looking forward to it and I can't wait to get out there."
Betts paid tribute to former teammate Cory McGrath for his efforts in welcoming him to the club when he arrived as shy, nervous youngster.
Six years down the track Ratten praised Betts for performing a similar role.
"I think he's having a fantastic influence over Chris Yarran and Jeff Garlett in the way that he mentors those players and really assists them around the club," he said.
"I think he's taken those players under his wing and done it really well."
