ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Helped
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Hurt
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Either A or B
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None of the above
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Detailed explanation-1: -If you exceed your credit limit on a specific credit card, your card issuer could increase the interest rate you pay on that card. If you have multiple credit cards under your name, your other credit card issuers might notice the change in your credit score and raise their rates as well.
Detailed explanation-2: -Even with over-limit protection, maxing out your credit card will hurt your credit score. That’s because using more credit increases your credit utilization ratio. Credit utilization is the amount of your total credit limit that you use.
Detailed explanation-3: -Having too many open credit lines, even if you’re not using them, can hurt your credit score by making you look more risky to lenders. Having multiple active accounts also makes it more challenging to control spending and keep track of payment due dates.