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I’m a money expert and this is the number one credit card mistake to avoid every month

Using a credit card can get you in trouble if you’re not careful – and there’s one particular mistake you need to avoid.

One thing credit According to personal finance expert Humphrey Yang, companies won’t tell you how much credit you should use.

Expert Humphrey Yang Points Out Mistakes Credit Card Companies Won't Tell You

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Expert Humphrey Yang Points Out Mistakes Credit Card Companies Won’t Tell YouCredit: TIKTOK / humphreytalks
Using too much of your existing credit may lead to your score being reduced

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Using too much of your existing credit may lead to your score being reducedCredit: TIKTOK / humphreytalks

In a recent TikTok VideosHumphrey warns that credit card users should not use more than 30% of their available credit.

“Doing so your score may drop,” he says.

In 2020, the average credit card limit is $30,365, according to data from Experian.

This means 30% of that figure is $9,109.50, which you’ll want to avoid exceeding.

One way you can navigate around this is to make the full payment or use a different card.

You can also try requesting a credit limit increase if you continue to exceed 30% of your available credit.

Whichever option you choose, be sure to use your credit card responsibly.

Separately, Humphrey also revealed a chart of five determinants credit score.

This includes the amount of debt you carry, your payment history, credit combinations, new credit, and the length of your credit history.

Your payment and debt history makes up 75% of your score, according to the chart.

For context, a credit score between 670 and 739 is considered “good,” while 740 to 799 is considered “very good.”

Excellent score is 800 and above.

Only one poor credit rating can make it harder to get a loan — meaning your next car loan or mortgage could suffer.

So you’ll want to monitor your credit rating and improve it if possible.

On the other hand, we explain why it could be good idea to quickly pay off debtalthough it may lead to a drop in scores.

Suze Orman Disclose when credit borrowers should avoid balance transfers.

Plus, see What happens to your credit card? if the Federal Reserve raises interest rates.

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https://www.the-sun.com/money/4650207/credit-card-limit-mistake-avoid/ I’m a money expert and this is the number one credit card mistake to avoid every month

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