Your credit card debit to limit ratio has a huge impact on your FICO score (30%). It should always be kept below 15%. If your card has a limit of $3,000 and your credit card debit has reached it, what payment will you need too apply to your balance to pay it down to 15%?

Question

Computers and Technology

Leland Hurley

3 July, 20:32

Your credit card debit to limit ratio has a huge impact on your FICO score (30%). It should always be kept below 15%. If your card has a limit of $3,000 and your credit card debit has reached it, what payment will you need too apply to your balance to pay it down to 15%?

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Answers (1)

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Hana Mcconnell · Answer 1

The payment that you will need to apply to your balance to pay it down to 15% is $2,550.

Explanation:

To determine the payment that you will need to apply to your balance to pay it down to 15%, the first step is to calculate the credit card balance in which your debit to limit ratio is 15% using:

Debit to limit ratio = credit card balance / total credit card limit

You have to isolate the credit card balance:

Credit card balance = Debit to limit ratio*total credit card limit

Credit card balance = 15%*$3,000

Credit card balance = $450

Now that you have the credit card balance in which your debit to limit ratio is 15%, you have to subtract this amount from the credit card limit to find the payment that you will have to make:

$3,000-$450 = $2,550