WATCH OUT: This Popular Trend May Be Ruining Your Credit Score

Do you find yourself swiping your credit card a little too often these days? If so, you may be falling victim to a popular trend that is wreaking havoc on credit scores.
In today's digital age, it's easier than ever to make purchases online and in stores. And while this convenience can be alluring, it's important to be mindful of how these transactions are impacting your financial well-being.
One of the biggest credit score killers is a high utilization ratio. This ratio measures how much of your available credit you are using. When you have a high utilization ratio, it shows lenders that you are struggling to manage your debt and may be a risky borrower. As a general rule, experts recommend keeping your utilization ratio below 30%.
Unfortunately, many people are exceeding this threshold without realizing it. They may think they are only making small purchases, but these expenses can quickly add up. And it's not just big-ticket items that can damage your credit score. Even small purchases, such as daily lattes or online subscriptions, can take a toll over time.
If you're not sure where your utilization ratio stands, it's easy to check. Simply add up your total credit card balances and divide that number by your total credit limit. If the result is over 30%, you may need to make some changes to your spending habits.
Here are some tips for lowering your credit utilization ratio:

Pay down your credit card balances as much as possible each month.

Avoid opening new credit cards unless you absolutely need them.

Ask your credit card company for a credit limit increase.

Use a balance transfer card to move high-interest balances to a lower-interest card.

Make extra payments on your credit cards throughout the month.

By following these tips, you can improve your credit score and get back on track to financial success.
So, what's the bottom line? If you're using your credit cards too often, you need to be careful. A high utilization ratio can damage your credit score and make it difficult to qualify for loans and other forms of credit. By taking steps to lower your utilization ratio, you can protect your credit score and secure your financial future.