why you should not max out your credit card limit
DESCRIPTION
Find out the reasons why you should not try to max out your credit card limit. For more information http://www.newhorizon.org/credit-info/max-out-your-credit-card-limit/TRANSCRIPT
Credit is a funny game….
Your CREDIT SCORE
does not come down to how much you owe as how you categorize it.
Whatever you do, avoid maxing out your credit card unless you don’t mind seeing your credit score take a ding.
#1. It risks a credit score downgrade.
● The debt to credit ratio makes up 30% of your total credit score.
● If you max out your credit card limit, this ratio is negatively impacted and your score drops.
#2. You need to pay off a portion of your debt to use the card again.
● Some company will go ahead and freeze your account which makes the card useless.
● This will result in dropping of your credit score because credit score is based on how much readily available credit you use.
RESOURCES:● For more information about maxing out your credit card
limit http://www.newhorizon.org/credit-info/max-out-your-credit-card-limit/
● Unsecured Credit Cards for Bad Credithttp://www.newhorizon.org/Info/creditbuilders.htm