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.
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?
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