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5 reasons why you should not max-out your credit card

IndiaTimes Tuesday, 21 November 2023
Maintaining a low credit utilization ratio is important to maintain a healthy credit score. It is recommended to keep the ratio below 30% and avoid maxing out your credit card. Maxing out your card can result in penalties, a debt cycle trap, negative impact on credit history, a drop in credit score, and loss of card benefits. If you find yourself close to maxing out your card, you can request a credit limit increase or pay off balances quickly to improve your credit utilization ratio. However, improving your credit score takes time and requires responsible financial behavior.
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