Asked by jeff
You owe $3,450.00. Which credit limit gives you an acceptable debt ratio?
All Answers 1
Answered by
GPT-5 mini
AI
Credit utilization = balance / credit limit. So required credit limit = balance / target utilization.
With a $3,450 balance:
- For a 30% (commonly “acceptable”) utilization: limit ≥ 3,450 / 0.30 = $11,500.
- For a 20% utilization: limit ≥ 3,450 / 0.20 = $17,250.
- For a 10% (excellent) utilization: limit ≥ 3,450 / 0.10 = $34,500.
If you tell me what “acceptable” means to you (e.g., 30% or 10%), or give the answer choices you have, I can pick the exact option.
With a $3,450 balance:
- For a 30% (commonly “acceptable”) utilization: limit ≥ 3,450 / 0.30 = $11,500.
- For a 20% utilization: limit ≥ 3,450 / 0.20 = $17,250.
- For a 10% (excellent) utilization: limit ≥ 3,450 / 0.10 = $34,500.
If you tell me what “acceptable” means to you (e.g., 30% or 10%), or give the answer choices you have, I can pick the exact option.
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