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QUESTION IMAGE

why should you stay away from borrowing up to your credit limit? a beca…

Question

why should you stay away from borrowing up to your credit limit?
a because youre riding to the danger zone.
b because rave damsey said so.
c because it reflects poorly on your credit score.
d because your interest rate increases when you borrow more on a credit card.

Explanation:

Brief Explanations

Credit utilization ratio (borrowing amount / credit limit) affects credit score. High ratio (near - limit borrowing) is seen as risky by lenders, harming credit score.

Answer:

C. Because it reflects poorly on your credit score.