I’m a Money Expert and Here’s the Number One Credit Card Mistake to Avoid Every Month


USING a credit card can get you in trouble if you’re not careful – and there’s one mistake in particular you need to avoid.

According to personal finance expert Humphrey Yang, one thing credit card companies won’t tell you is how much of your available credit you should be using.


Expert Humphrey Yang Breaks Down the Mistake Credit Card Companies Won’t Tell YouCredit: TIKTOK/humphreytalks
Using too much of your available credit could cause your score to drop


Using too much of your available credit could cause your score to dropCredit: TIKTOK/humphreytalks

In a recent TikTok VideoHumphrey warns that credit card users should not use more than 30% of their available credit.

“Doing so can lower your score,” he said.

In 2020, the average credit card limit was $30,365, according to data from Experian.

That means 30% of that number is $9,109.50, which you’ll want to avoid going over.

One way around this is to make enough payments or use another card.

You can also try asking for a credit limit increase if you continue to exceed 30% of your available credit.

Whichever option you choose, be sure to use your credit card responsibly.

Separately, Humphrey also revealed a chart of five factors that determine your credit score.

This includes the amount of debt you carry, payment history, credit mix, new credit, and length of credit history.

Your payment history and debt account for 75% of your score, according to the table.

For context, credit scores between 670 and 739 are considered “good, while 740 to 799 are considered “very good.”

An excellent score is 800 and above.

Having a bad credit score could make borrowing more difficult, which means your next car loan or mortgage could be affected.

So you’ll want to keep an eye on your credit rating and improve it if you can.

On the other hand, we explain why it can be a good idea to pay off debt quickly, even if it can lead to a lower score.

Suze Orman reveals when borrowers should avoid balance transfers.

Plus, see what will happen to your credit card if the Federal Reserve raises interest rates.

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