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  1. #1
    Registered User New Member

    What is A Good Credit to Debt Ratio?

    Hey Credit Forum members!

    I'm trying to clean up my credit after some very irresponsible credit card use during my college years. My first question here is pretty basic but I've read conflicting information about this so I wanted to get a general consensus. What is the optimal debt to available credit ratio? Right now I am using about 65% of my available credit but am trying to get this down asap - just trying to figure out what to shoot for.

    I've read that this should be no more than 20% on some sites, but other sites say that this should only be 10% AT MOST. Very confused as to what to believe!

  2. What is A Good Credit to Debt Ratio?
  3. #2
    10% seems pretty conservative - I have noticed that once you go over 30% your credit scores really take a hit... anything under this seems to have a minimal effect at least in my experience. If you have a low credit limit it may not be a bad idea to stay around or under 10% - simply because it may only take one or two big purchases to catapult you over the 30% threshold.

  4. #3
    Also forgot to note that if you are using a rewards cards it's almost never a good idea to carry a balance because the amount of interest you pay will outweigh any rewards you own.

  5. #4
    If I have to carry a balance I always try to stay below 20% and have never seen my scores drop as a result so you are probably safe as longs you stay below that amount.
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  6. #5
    Registered User New Member
    Also if you're going to apply for more credit to decrease your utilization make sure you apply for an actual credit card and not a charge card.

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