Paying the minimum on your credit card may seem like a convenient option, but it could be sabotaging your credit score in the long run.

🤔 Understanding the impact of minimum payments on your credit utilization ratio and payment history is crucial for maintaining a healthy credit profile.

The credit utilization ratio, which measures the amount of credit you're using compared to your total available credit, is a significant factor in your credit score calculation.

When you only pay the minimum, you're keeping a larger portion of your available credit in use, which can negatively impact this ratio.

Experts generally recommend keeping your utilization ratio below 30% for the best credit score. - https://lendinghelpguide.com/blog/paying-minimum-hurt-credit-score/?unique_id_bx2luobg

The Surprising Impact of Minimum Credit Card Payments on Your Credit Score