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A healthy score can provide access to betterinterest ratesfor mortgages, auto loans, personal loans and more.
One factor in particular that can seriously damage your credit score is having too much debt.
According to the latest data from theFederal Reserve Bank of New York, American debt has reached staggering levels.
Total U.S. household debt increased by $93 billion, reaching $18.04 billion as of Q4 2024.
At the same time, credit card delinquency rates and mortgage balances are also up.
While these statistics are concerning, there are ways to improve your credit and get ahead.
Credit expert John Ulzheimer spoke withCNBC Make Itto explain the one mistake he madeand how he fixed it.
Why Its Important To Use More Than One Credit Card
Ulzheimers biggest credit mistake?
He says it was only using one credit card with a low credit limit of just $600.
Its generally recommended by expertsthat you use less than 10% of your available credit at any given time.
Maintaining multiple credit cards simultaneously may help lower your credit utilization ratio and improve your credit score.
He furthered that discipline and self-control are key.
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