Will using a high percentage of my limit affect my credit score?
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Using a high percentage of your credit limit can affect your credit score. When you consistently use most of your available credit, it signals to lenders that you may be relying too heavily on borrowed money, which can lower your score. This is called credit utilization. Ideally, keeping it below abRead more
Using a high percentage of your credit limit can affect your credit score. When you consistently use most of your available credit, it signals to lenders that you may be relying too heavily on borrowed money, which can lower your score. This is called credit utilization. Ideally, keeping it below about 30% is seen as healthy. Paying off balances regularly or increasing your limit (without increasing spending) can help improve your score over time. So it’s not just about spending, but also how much of your limit you’re using at any time.
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