Credit Trap: Maxing Out Your Credit Card

Posted by CapWay in CreditApril 17, 2019(Last Updated November 1, 2021)1 min read
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Are you ready to make some real money moves?

In the credit game, there are a number of traps that will keep you from achieving a high score. Trap #2 is maxing out your card. Your balance has the second biggest impact on your credit score. 

If your balance is higher than 30% of your credit card limit, then your score will drop. This means, if you have a card with a $500 limit, then you should charge no more than $150 on your card. If you charge more than $150, then your score will start to drop. 

You can find out your charging limit by using this formula: 


Your Credit Card Limit x .30 = Your Charging Max


Check out Trap #3: No Credit History


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