Imagine all your financial obligation to be for a credit that is single (donвЂ™t worry вЂ“ it is simply hypothetical!) Imagine your present stability on that imaginary bank card is $2,300 as well as your total borrowing limit on that exact same imaginary card is $2,500. You’ve got a bad financial obligation utilization ration, because youвЂ™re making use of the majority of your available credit. Now letвЂ™s that is amazing exact exact same $2,300 stability for a card having a $10,000 limitation. Also because youвЂ™d be using so much less of your potential debt as a percentage of whatвЂ™s available though youвЂ™d owe the same dollar amount, youвЂ™d have a much better debt utilization ratio.