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lthf69

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How would I know what my debt to ratio is?

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Your debt to available credit ratio is the total amount due on all of your cards compared the the amount you have available. So if you have one card and your limit is $1000, and you have used $700 on that card then your debt to credit rate is 70%. Ideally you'd want this rate to be under 20%, so for this amount of credit you'd want less than $200 on the card. this rate shows how you use credit.

Your debt to income ration is the total amount of debt you have (CC, loans, cars, mortgage, student loans) compared to your pretax income. So if you make $50k/year and you have $100k in CC, car loan, mortgage and SL, then your debt to income rate would be -200%.  This rate shows how overextended you are.

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