This is the amount of money that a person has in outstanding debt, compared to the amount of available credit on all of the individual's credit cards, credit lines, or credit accounts. The higher a person's debt to available credit, the more risky the individual appears to the potential lenders.

• Rule of Thumb: 30-35%% Ratio: Meaning that keep balances 30-35% of the available credit line. For example, if a person has a $1000 credit card, keep the balance NO higher than $300-350 at any given time.