Sunday, December 20th, 2009

What is the ideal debt to credit ratio?

debt to credit ratio
danielleyoung1 asked:


I was looking over my credit report and found my dcr. This report doesn’t have my score so I was wondering my dcr was decent. What should it be? Thanks:)
Also, is there a certain number of inquries you should stay under?

This entry was posted on Sunday, December 20th, 2009 at 2:36 pm and is filed under Debt Ratios. 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.

4 Responses to “What is the ideal debt to credit ratio?”

bdancer222 Says:
December 21st, 2009 at 9:19 am

The ideal revolving debt to available credit ratio is 0. Carrying balances of more than 30% hurts your score. Paying off balances is the quickest way to boost your score.

Hard inquiries (inquiries due to credit applications) take a nip out of your score. Multiple hard inquiries in a short period takes a big ole bite. Soft inquiries make no difference.

Ken S Says:
December 22nd, 2009 at 6:23 pm

It is best to pay full amount of your credit card bill before due date each month. Keep it below 25% of your credit limit for each credit card. You can get “estimated” FICO Score score from following website by replying to some questions:

GUS Says:
December 25th, 2009 at 2:16 pm

Normally I would say zero but in my personal experience the scoring model for FICO ignores accounts with zero balances. I have found that my score is higher when I have a small balance (less than 10% of the limit on the account) outstanding. When I pay all three of my revolving accounts off my score goes down. When I exceed 10% on any of the cards my score goes down. But when I keep a small balance on all three my score goes up. Go figure!

Leeza C Says:
December 27th, 2009 at 12:14 pm

Well, I think I have a pretty good idea on how to answer your question…but since I’m not completely sure, I won’t say it! However, for all of my debt questions, I went online to a financial consultant website-. I hope this will help you. :)

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