Search by Keyword
Balance-to-Limit Ratio
Explanation:
The ratio of credit spent to total available credit. If you have a little debt and a lot of available credit, your balance-to-ratio limit is low, which is good for your credit score.
For example, if you have a credit card with a $1,000 credit limit and your balance on that credit card at the end of your billing period is $500 then your balance-to-limit ratio will be 50%.