A high ‘debt-to-credit ratio’ or ‘utilization rate’ of your credit card which by definition is your monthly spending on credit expressed as a percentage of your total monthly credit limit, often suggests a bad credit score. For example, if you have $5000 monthly credit limit and you have spent on credit $3500 in a month, your utilization rate is 70% which is high enough to signal a bad credit score. ‘Utilization rate’ of your credit card reflects heavily on your credit score and can ascertain your ability to get a loan. Normally, it is recommended that you should try to keep your 'utilization rate' below 30% or even less than 20%, if possible. Therefore, it is clear that lower your utilization rate better your credit score will be. You can, therefore, basically improve your credit score either by getting a credit limit increase or by lowering your debt.