INDIANAPOLIS — While cashing in on a deal could help you save in the long run, getting carried away could cost you.
There could be an unexpected impact of maxing out a credit card.
Your credit limit is the dollar amount a bank lets you borrow, based on your credit history and credit score. But just because the bank says you can have that much doesn't mean you should spend that much.
Consequences of credit card debt include the cost of pricey fees, especially now, and a drop in your credit score.
A lower credit score could impact other costs in your life, including the price of car insurance and new loans.
The lower you keep those balances, the better. People with the highest scores tend to have credit card balances of less than 10%.
So before the holidays kick off, pay off as much credit card debt as you can, and figure out a plan for next month's spending.