What does the credit to debt ratio on your credit report mean?

Andrea J asked:


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.

Franklin

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Tags: Credit Debt, Credit Report, Debt Ratio

This entry was posted on Sunday, May 29th, 2011 at 3:02 am and is filed under Credit. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “What does the credit to debt ratio on your credit report mean?”

1. Dixie Darlin' Says:
   May 31st, 2011 at 12:14 pm

   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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