10-31-2008 03:24 PM
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
10-31-2008 03:34 PM
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
11-01-2008 06:45 AM
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 % ?
11-01-2008 02:59 PM
11-02-2008 05:28 AM
11-02-2008 07:22 AM
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.
11-02-2008 07:34 AM
11-02-2008 07:52 AM
11-02-2008 09:00 AM