Do you know what you need to know about your credit card? If you are a person aspiring to improve your credit card score and avoid card debt, you can reduce the credit score to zero.
I recently asked myself one of those “Shouldn’t I, as a mostly-functioning adult, know the answer to this?” questions:
“Is it possible to use a credit card too much?”
Wait. Before you dismiss me as a doofus and click away, know I religiously pay off my credit card in full at the end of each month.
If I’m paying off my card and stay within my credit limit, I’m good, right?
Well, I’ve spent a lot of money recently. I made a fairly big move, and I had to pay for other costly commitments I’d made months back. All these expenses went on my credit card, because, you know, rewards.
But at the end of last month, Credit Sesame shot me an email update on my credit score. It’d dipped. Ring the alarms, y’all.
OK, it wasn’t a huge dip, but I still needed to know why. I logged into my Credit Sesame account, which grades my various credit factors.
Sure enough, because I’d been charging so many expenses to my credit card, my credit utilization rate had increased, resulting in my reduced credit score.