Is It Possible To Have A High Credit Score Despite A Rising Credit Balance?
As you probably know, having a good credit score can work to your advantage in many ways. For instance, the interest rates you are charged on credit cards and loans is mainly based on your score.
We have started to become a cashless society. With today’s technology, it is so much easier to tap and pay or shop online with a credit card number. You could say that it is hard not to use credit these days. It provides a convenient way of paying for products and services that we regularly need like groceries and food. It also enables us to make large purchases without the need to first save up for it. Most people who purchase a home take out a mortgage. Auto loans are commonly used when buying a car. Credit has become a gateway to attaining what we need in the now.
Who uses credit cards?
According to data provided by the Federal Reserve, 83% of adults had at least one credit card in 2022. Experian broke it down even further and averaged 3.84 credit cards for each American adult. The site Zippia noted that there are 1.1 billion credit cards in the U.S. and 41% of consumers prefer to pay with a credit card.
As we depend more and more on technology, credit card usage is expected to increase. That means keeping a healthy credit score has never been more important. Knowing all you can about your credit, including how the balance you carry could affect it, could have far-reaching consequences. For starters, is it possible to have a good credit score despite a rising credit balance?
