Debt-to-Limit Ratio

The debt-to-limit ratio compares the amount of credit in use to the total amount of credit available. This ratio is used in calculating credit scores. Having a high debt-to-limit ratio would mean that you have a high amount of debt leaving you with a small amount of available credit. This would have a negative impact on your credit score. This ratio is often referred to as the balance-to-limit ratio or the credit utilization ratio.

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