Meaning Balance-to-limit ratio
What does Balance-to-limit ratio mean? Here you find 2 meanings of the word Balance-to-limit ratio. You can also add a definition of Balance-to-limit ratio yourself
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Balance-to-limit ratioBalance-to-limit ratio is used in the calculation of credit scores. It compares the amount of credit being used to the total credt available to the borrower. Having a low ratio -- in other words, not much debt but a lot of available credit -- is good for your credit score. Also known as a credit utilization ratio.
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Balance-to-limit ratioThis ratio calculates the amount of outstanding credit available to an individual or business against the amount of credit used or current outstanding balances. The lower the ratio, typically, the lower of a credit risk.
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