Why you Don't want To Max Out Your Credit Card!

Maxing out your credit card can have a big impact on your credit score. One of the major components in the credit score formula is the percentage of your available credit you have used. If this number is over 30%, your credit score can be hurt.

So it would not be wise to owe $ 5,000 on your credit cards if you only have a $ 5000 credit limit. You'll be much better off lowering this percentage.

Most credit card companies also have fees for going over your credit -limit if you opted in for such a service. Know that if you do opt in, you will likely run into trouble. One of the best ways to keep your credit card debt down- is to not allow yourself to spend more than your credit limit. Not opting in for this over- the limit coverage makes good sense.

Transfer your balance (s). Another option would be to transfer the balance to a credit card that has a larger limit and, ideally, a lower interest rate. This will free up the other cards and still leave some room on the new one. Keep in mind, credit card companies charge a 3% fee for balance transfers, though there are some, such as the chase slate card, that offers a balance transfer without the fee if it done within a certain time frame after becoming a cardholder. Weigh out the cost before jumping into- a decision you'll will regret.

As an alternative, you might consider a personal loan consolidate your credit card debts. This will most likely have a lower interest rate, and may free up your credit-cards for emergencies. Make sure this does not tempt you to spend more money on your cards.