Debt to CreditLiabilities in favour of loans
the lower the better, but I have to contradict Andrew that zero (0) is the best. To have 1% is better than to have 0, you should have a certain amount of credit. If you think of credit, think of it in the underwriter' spective.
Having no credit card usage can mean anything. It'?s a strange fact when you owe 0. All the point of credit assessment and credit assessment is to be able to "predict" you and assess whether you are able to repay debts. Using your card and other trading lines is best for your balance.
For Credit Line Pros, Authorized User Trade Lines | Los Angeles | United States, we always make sure that our trade lines have a low load (usually less than 3%), but never 0, depending on the contexts. Do you refer to a company or a person? The following applies to an individual: the less debt, the better.
It is good for a company manager to have some debt, because if the deal goes down, you risk someone else's cash and not your own. In general, there are also fiscal benefits when a company is financed with borrowed capital. This is the BEST ratio...no debt and no worry about what your available credit is.
Obviously, the worse is the opposite... a maximized credit line. Everything in between is just that.... not the best and not the worse, but the near zero debt you have is better. Finance has put the global economy at a great disadvantage by trying to persuade them that it is actually a good thing to have a certain amount of debt.
Don't go over 50-60% debt on a single map and keep total debt to available credit (all maps) ratios below 25-30% and u should be fine. Depending on the nature of the business, the applicable income taxes and the cost of debt and own funds. It' not possible to just give you a general relationship.