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.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Debt To Credit Ratio. Payroll & Accounting Heaven Ltd.
August 16, 2022
Chicago Manual of Style (CMS):
Debt To Credit Ratio. Payroll & Accounting Heaven Ltd. (accessed: August 16, 2022).
American Psychological Association (APA):
Debt To Credit Ratio. Retrieved August 16, 2022
, from website:

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.