How does using credit impact my credit score?

Using credit can impact your credit score in several ways. Your credit utilization rate, which is the amount of credit you use compared to your credit limit, can significantly affect your credit score. A high credit utilization rate can indicate that you are relying too much on credit and may be at risk of overextending yourself. This can negatively impact your credit score.

Making ontime payments on your credit accounts is another important factor in maintaining a good credit score. Late or missed payments can have a significant negative impact on your credit score.

Additionally, the length of your credit history, the types of credit accounts you have, and the number of recent credit inquiries can also impact your credit score. Overall, responsible use of credit can help you build and maintain a good credit score, while irresponsible use can have a negative impact.