Smart Trick to Boost Credit Score: Manage Your Credit Utilization Wisely

Friday, 12 April 2024, 13:00

Learn a smart trick to boost your credit score and manage your credit utilization wisely. Discover the risks involved in raising your credit limit for improving your score. Find out why paying off debt is the best long-term solution for a healthy credit score.
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Smart Trick to Boost Credit Score: Manage Your Credit Utilization Wisely

Boost Your Credit Score with a Smart Trick

Increasing your credit limit is a common approach to lower your credit utilization ratio and potentially improve your credit score quickly. However, this strategy comes with inherent risks if not managed properly.

The Pitfalls of Raising Your Credit Limit

  • If you overspend after raising your credit limit, your credit score may suffer.
  • Adding to your debt can lead to paying more interest and missing minimum payments, negatively impacting your credit history.
  • Increased credit card balance could worsen your credit utilization ratio, affecting your score.

Tip: Prioritize paying off debt over raising credit limits for a healthier financial profile.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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