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What is a credit utilization ratio or debt to credit limit ratio.
The Lower the ratio the better your score is.
Must Be less than
79%
Best If less than 30%
Say you have 2 installment loans and 3 unsecured credit cards loans..
A home loan with a 100,000 dollar balance on 130,000 original 76%
ratio
A car loan with a 10,000 balance on 12,000
original
83% ratio
Total for installment loans 110 of 142,000
or
77% ratio overall
A Visa with 5000 on a 5500 credit
limit
90% utilization
A MasterCard with a 0 balance on a 5000
limit
0% utilization
A Gas Card with 200 on a 1000
limit
20% utilization ratio
Totals of 6200 on
11,500
53% overall ratio
What is a Credit report debt to credit ratio? What is a good
balance to limit ratio on credit cards? 30% or 30 percent or thirty percent. No
more than 79%. If your balance to limit ratio is higher than 79% your score
will drop.
§
Bad credit utilization ratio. Credit cards with a
1000 limit. 1000 credit card limit for bad credit. How to get a credit card
with a 1500 limit with bad credit
§
How high should your credit to debt ratio be. 20000
credit card limit cards
Question
Real
Person
How come I pay all of my bills on time and on my credit report
everything is pays as agreed and never late and as of right now I have one
credit card that is $2000.00 and I pay more than the minimum and two
vehicles and a mortgage but my credit score never seems to go up. As a
matter of fact when I refinanced my home and they pulled my credit report
and saw how good my payment history was the loan officer said I dont see
why your credit score is this low because everything on your credit is pays
as agreed never late. Is there an error with the credit bureau with the
score calculations ? my score is only 652 and it should be super high
because everthing that was incorrect I disputed it was deleted so why is my
credit score not rising ? Do I need to contact the credit bureaus about
this?
----------------
Bo
I bet it is too much owed on too many new accounts
Get everything down to less than 80 %
Even so
651 is pretty good
------------------------------
Real
Person
Ok my
mortgage is 131,000 and one vehicle is 20,000 and the other is 25,000 and
the one credit card so is that why and to what should I try to get those
down to because with houses and vehicles is kind of hard to pay big lumps
some on those.
----------------------------------
Bo
What matters is how much you owe to how much you were allowed to borrow on
each account
IF
You owe more than 80% on these YES
That is the problem
Over time these will come down and your score will go up
OR
You can lump sum it and fix it now
Cl
I just closed out a bunch of old credit cards that I had open with
approx $30000 in credit. This has negatively impacted my score. Can I
reopen those accounts to increase my score again or is there another ideal
way to get my score back up.
I
did not have any balances owed at all on them. I just closed them out
because they were old credit cards I never used. Should I still reopen them
to upgrade my score.
that should not hurt your score something else happened
Something got more than 2 years old
Something might be one day late.
May may not have 3 rated open lines of credit.
I would open up at least one I guess and see.
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