Debt-to-available-credit ratio
Debt-to-available-credit ratio
Debt-to-available-credit ratio is the quotient of an individual's outstanding debt obligations divided by that individual's total amount of approved credit. If a person has only one credit account of $5000 and owes $2500 under that account, the debt-to-available-credit ratio is 50 percent. From a lender's perspective, a higher ratio indicates greater risk.
6.05
5.78
