According to the question, paying off and closing is the $ 800.00 limit card would decrease your debt ratio. The correct option is (b).
To decrease your debt ratio, you should pay off and close the credit card with the lowest credit limit.
This is because the debt ratio is the ratio of your outstanding debt to your available credit, and closing a credit card will decrease your available credit, thus reducing the debt ratio.
Therefore, the correct answer is: b. the $800.00 limit card
By paying off and closing the credit card with the $800.00 limit, you would decrease your debt ratio.
Complete question:
You have four credit cards. each has a balance of $450.00, but their credit limits are $800.00, $1,200.00, $1,300.00, and $1,500.00. paying off and closing which card would decrease your debt ratio?
a. the $1,500.00 limit card
b. the $800.00 limit card
c. the $1,200.00 limit card
d. the $1,300.00 limit card