Smart Trick to Boost Credit Score: Manage Your Credit Utilization Wisely
Friday, 12 April 2024, 13:00
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.