I have a question and I wanted to know if anybody out there can help me with this; first off what does debt to credit ratio mean and what if your debt to credit ratio is 94% is that a good thing or a bad thing can somebody advise me on this quesiton please
It is the total you owe on yiur credit cards divied by the total credit limit. If you have one credit card with a $1000 limit and you owe $940 on it, your ratio is 94% which is maxed out.
You ratio should be no more than 9%. At 84%, you could be loosing over 100 points on your credit score.
Also know as %util
First of all marty I want to thank you so very much for helping me with that question, well maybe you can help me on this next question. I just ran my free credit report with equfiax didnt tell me my score but it showed me whats on my equifax file, now I have a installment school loan that i have been paying on , its saying the bal on it is 2,475.00 thats the reason its saying my debt to credit ratio is 94% but the real bal on my loan is bout 1,200.00 how do i get them to update this installment loan so it will tell my real bal and knock down that % ?
Is that the only credit on your report. Credit cards with balances (whether open or closed) could get you to the 94% figure.
How long is your credit history? Did you have anything else open before that installment loan?
Auto lenders don't require super high scores but they are big on seeing a couple accounts with a few years of positive history.