How High Credit Card Balances Can Affect Your Credit Score


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Maintaining high credit card balances can have a significant impact on your credit score. When your credit card balances approach or exceed your credit limits, it can negatively affect your credit utilization ratio, which is a key factor in determining your credit score. High utilization indicates a greater risk to lenders and can result in a lower credit score. Additionally, carrying high balances over time can lead to increased interest charges and potential difficulty in making timely payments, further impacting your creditworthiness. Understanding how high credit card balances can affect your credit score is crucial for maintaining a healthy credit profile.