# How to Figure Out Debt-to-Credit Ratio

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One of the factors used in figuring your credit score is the amount of money that you owe. It's a big one, accounting for 30 percent of your score. Within the category, the credit scoring formula looks at your debt-to-credit ratio, also known as your credit utilization, which measures how much of your available credit you're currently using. For example, while \$5,000 might be a lot of debt for someone who only has \$6,000 of available credit, it's not much when that person could tap into \$100,000 of credit limits across all her cards.

## Step 1

Add all of your credit card balances to figure your total credit card debt. For example, if you owe \$400 on Credit Card A, \$1,600 on Credit Card B and \$0 on Credit Card C, your total debt is \$2,000.

## Step 2

Add your maximum credit lines for each credit card to figure your total credit amount. Include the limits for all your credit cards, even if you don't currently have a balance on them. Continuing the example, if your credit limit is \$1,500 on Credit Card A, \$4,000 on Credit Card B and \$2,500 on Credit Card C, your total credit limit is \$8,000.

## Step 3

Divide your total debt by your total credit limit to figure your debt-to-credit ratio. In this example, divide \$2,000 by \$8,000 to find that your debt-to-credit ratio is 0.25, or 25 percent.