BANKING AFFAIRS

Detailed explanation-1: -Yes. Most of the time, you’ll be better off if you can avoid it. You’ll maintain the best credit score possible if you keep debt at a minimum to begin with. You can avoid paying interest on everything you buy if you pay your credit card bill in full each month.

Detailed explanation-2: -While spending over your credit limit may provide short-term relief, it can cause long-term financial issues, including fees, debt and damage to your credit score.

Detailed explanation-3: -Approximately 35% of the score is based on payment history. Approximately 30% of the score is based on outstanding debt. A good guide is to keep your credit card balances at 25% or less of their credit limits. Approximately 15% of the score is based on the length of time credit has existed.

Detailed explanation-4: -Overspending like that can put you and any credit card co-signers-like your parents-on the hook for high interest charges and could wreck your credit score if you are unable to pay back the loan.