What does "insufficient debt capacity" mean?

You don't have enough income to pay back the debt, or at least you don't have enough income after subtracting an allowance for debt you have already contracted.

Put another way: either you don't make very much money or you have a staggering amount of debt for your income level already.

Insufficient Debt Experience

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RE:

What does "insufficient debt capacity" mean?

I was denied a credit card because I have "insufficient debt capacity". I can find the term used all over the internet, but I can't find anywhere that actually explains what it means.

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Well, unfortunately rent and utilities do not usually reflect on your credit report on a monthly basis. If you have no positive credit accounts, your credit will only reflect the collection accounts, which will give you a low score, and no available credit, thus the insufficient credit. The best thing you can do is 1) take care of the collection accounts and/or 2) try to establish some positive credit in your name.

In your case it means you have no credit except for bad credit. Utility companies do not report to the credit bureau unless it is to report a collection account or file a lien. Not all rental agencies report to the credit bureaus either. In essence you have a negative score. You have to establish some new credit with an excellent pay record. You could start with a prepaid credit card or store card. It will still take some time because you have to have had the account long enough to establish a payment record.

You do not have enough income to live never mind take on debt.

By google to collect some related information or you may try using answer engines like yahoo answer or yedda.com to get some related ideas.nonetheless,If you prefer some direct resource,here http://www.debtfreetips.info/debt-free.htm is a good one from my own experience.

Could be lack of credit history or it could be that you have too many debts -- your debt to income ratio is too high.