💳 Don't spend everything they give you #shorts
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Summary
AI-generatedThis video explains the concept of credit utilization ratio. Spending close to the credit limit can negatively impact your credit score, even though you were approved for that amount. It's generally recommended to keep credit utilization below 30% to maintain a healthy credit score, which is important for securing favorable mortgage rates when buying investment properties.
Key insights
Credit utilization ratio determines 30% of your overall credit score.
Mistakes to avoid
Don't spend the full amount of your credit card limit because it's viewed as risky behavior and will lower your credit score.
Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial