Secured Unsecured
Credit APR APR
Excellent 4.75% 5.50%
Good 5.00% 5.90%
Average 5.85% 6.75%
Fair 6.40% 7.25%
Poor 7.50% 8.40%
Use the table above for interest rate questions.
You have a credit card that has a balance of $3,589.90 and a credit limit of $5,000. How much is the balance over the acceptable debt ratio percentage?
To calculate the balance over the acceptable debt ratio percentage, we first need to determine what the acceptable debt ratio percentage is. This can vary depending on the lender, but a common guideline is to keep your credit card balance below 30% of your credit limit.
In this case, 30% of the credit limit of $5,000 would be $1,500.
So the acceptable debt ratio balance would be $5,000 (credit limit) * 30% = $1,500.
To find the balance over the acceptable debt ratio percentage, we subtract the acceptable balance from the actual balance:
$3,589.90 - $1,500 = $2,089.90
Therefore, the balance over the acceptable debt ratio percentage is $2,089.90.