Balance-to-limit Ratio

A balance-to-limit ratio is a number that indicates how much of your available credit you are currently using. This number is important because it helps lenders to calculate your credit score. The higher your balance-to-limit ratio, the lower your credit score will be. Therefore, if you want to improve your credit score, it is important to keep your balance-to-limit ratio low. You can do this by paying off your debts and avoiding new debt.