Debt To Credit Ratio

Business, Legal & Accounting Glossary

Definition: Debt To Credit Ratio


Debt To Credit Ratio


Full Definition of Debt To Credit Ratio


The amount of debt owed on revolving lines of credit relative to the total amount of all available credit limits on all revolving accounts. This ratio is used as one factor in determining a consumer’s FICO score. Lenders assume that borrowers with a lower debt to credit ratio are more likely to be using credit responsibly and less likely to default. A debt to credit ratio below 30% is considered good.


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Debt To Credit Ratio. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
August 16, 2022 https://payrollheaven.com/define/debt-to-credit-ratio/.
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Debt To Credit Ratio. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/debt-to-credit-ratio/ (accessed: August 16, 2022).
American Psychological Association (APA):
Debt To Credit Ratio. PayrollHeaven.com. Retrieved August 16, 2022
, from PayrollHeaven.com website: https://payrollheaven.com/define/debt-to-credit-ratio/

Definition Sources


Definitions for Debt To Credit Ratio are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.