What does the credit to debt ratio on your credit report mean?
Question by Andrea J: What does the credit to debt ratio on your credit report mean?
I have 100% credit and 0% debt on my credit report. What does this mean? Im young 21 and im just really starting to really look at this stuff. And I really have no idea what all this means.
Debt Used divided by Available Credit = Debt Load
Example:
$ 2,500 of debt charged to a credit card
with a limit of $ 5,000
$ 2,500/$ 5,000 = a debt to credit ratio of 50%
$ 10,000 of credit card debt with total available limits of $ 10,000 (means you are maxed out on all your cards!)
= $ 10,000/$ 10,000 = 100% debt to credit ratio
If you have 0 debt then your debt to available credit ratio is excellent.
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