CREDIT CARDS 

Maxing out your credit card, or using its entire credit limit, is discouraged by financial advisors due to potential adverse consequences. This practice can lead to financial strain and impact your credit score negatively.

Maxing out your credit card leads to a high credit utilization ratio, indicating financial strain.

Carrying a balance results in significant interest charges, increasing debt burden over time.

The inability to pay the minimum by the due date incurs late payment fees, adding to overall debt.

High credit utilization negatively affects credit score, impacting future borrowing ability.

Maxed-out cards and low credit scores make obtaining further credit challenging due to perceived risk by lenders.