Every credit card comes with a credit limit. As long as you don’t go over your limit, there won’t be any penalties not from your credit card issuer anyway. Many credit card consumers don’t realize how bad it is to max out their credit card(s). If you have multiple cards, try to keep the balances evenly distributed amongst them, so you never run into this situation. Here are 3 reasons why you should never max out your credit card.
Hurts Your Credit Score One-third of your credit score depends on the “credit utilization ratio”, which is the amount you owe versus the credit line available to you. For example, if your credit card balance is $300 and your credit limit is $1,000, then your credit utilization is 30%. The lower this percentage is, the better your credit score will be. Experts recommend keeping your credit card balances below 50% of the available line of credit given to you. If you do
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