Round any decimals to the nearest penny.
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?
First, we need to calculate the acceptable debt ratio percentage. This is typically around 30%-35% of your credit limit. Let's use 35% for this calculation.
35% of $5,000 = $1,750
Now we need to calculate how much the balance is over the acceptable debt ratio percentage:
$3,589.90 - $1,750 = $1,839.90
Therefore, the balance is $1,839.90 over the acceptable debt ratio percentage.