Why Is a Credit Limit Important?

Описание: Ever wondered why your credit card has a spending cap? Understanding your credit limit is crucial for building healthy financial habits and leveraging credit wisely. This video breaks down everything teens need to know about credit limits and their impact on financial health.

In this video, you'll discover:
► What a credit limit is and how it functions.
► The direct relationship between your credit limit and your credit utilization ratio.
► Why managing your credit limit wisely is key to building a strong credit score.
► Tips for how a credit limit can help prevent overspending and debt.
► Strategies for increasing your credit limit responsibly as your credit journey progresses.


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