question megan would like to purchase a house in a few years but her credit score is 4293617
Megan would like to purchase a house in a few years but her credit score is not very high, she need to find a way to improve her credit score. part of her problem is that she has almost maxed out her credit cards.
Credit card 1 has balance $5100 and a credit limit of $5500
Credit card 2 has balance of $3800 and credit limit of $4000
Credit card 3 has balance of $ 3200 and credit limit of $3500.
Lowering this percentage will increase her credit score, getting this percentage down to less than 50% would be good. it would be even better for her credit score if she could get this percentage down to less than 33%.
1\ if Megan total up her balance and come up with a plan for Megan to reduce her debt over the next couple of years. reducing her balance without reducing her credit limit will lower her debt to credit ratio, so what is the total balance or total debt on Megan’s cards? And what is her total credit limit?
2\ calculate Megan’s debt to credit ratio as a percentage. round the nearest percent.
3\ they decide that Megan need to reduce her debt to credit ratio to 50% over the next tow years, what amount of debt would be 50% of her total credit limit ? and how much she need to pay off to reach that amount?
4\ she wonders if she will be able to reduce her debt to credit ratio to 33% by the end of the third year. how much would she need to pay off in the third year to reach 33%?