How Credit Card Debt Affects Your Credit Score

Credit card debt plays a major role in determining your credit score, and understanding how can help you avoid damaging your financial health.  One key factor in your score is your credit utilization ratio, which measures how much of your available credit you’re using. If you’re consistently using more than 30% of your credit limit, it can lower your score.

To protect your score, focus on reducing your balances. If you have multiple credit cards, prioritize the ones with the highest interest rates or largest balances first. By managing your credit utilization responsibly, you’ll build a stronger financial profile and improve your credit score over time.