Carrying a large credit card balance can hurt your credit

Your credit score is one of the most important numbers in your financial life. It can determine whether or not you get approved for a loan, what interest rates you qualify for, and even impact your ability to rent an apartment or get a job. One of the key factors that goes into determining your credit score is your credit card balances. Specifically, carrying a large credit card balance can harm your credit score.

When lenders look at your credit score, they want to see that you are responsible with your credit. One way they measure this is by looking at your credit utilization ratio, which is the amount of credit you are using compared to the amount of credit available to you. The lower your credit utilization ratio, the better. Ideally, you should aim to keep your credit utilization ratio below 30%.

For example, if you have a credit card with a $10,000 limit and you are carrying a balance of $3,000, your credit utilization ratio is 30%. If you can pay off some of that balance and lower your ratio, your credit score will improve.

The higher your credit utilization ratio, the more it will hurt your credit score. In fact, high credit card balances are one of the biggest reasons that people’s credit scores drop.

Also, when you carry a large credit card balance, you may find yourself paying more in interest charges. Even if you make your monthly payments on time, the interest charges can add up and make it harder to pay off your balance.

In order to maintain a good credit score, you should avoid carrying large credit card balances. Instead, aim to keep your credit utilization ratio below 30%. Paying your balances in full each month is the best way to keep your credit utilization ratio low, and improve your credit score.

It is also important to keep in mind that the longer the outstanding balance is on your credit card, the more it will affect your credit score negatively. If you can’t pay off your balance in full, try to at least make more than the minimum payment to bring down the balance.

In conclusion, carrying a large credit card balance can harm your credit score. It is important to keep your credit utilization ratio low and avoid carrying high credit card balances. This will not only help maintain a good credit score but also save you from high interest charges.

Free Credit Report from Borrowell

It is important to regularly check your credit report to ensure that the information it contains is accurate and up-to-date. Checking your credit report every six months is a good way to catch and address any errors or fraudulent activity that may have occurred.

One reason to check your credit report every six months is to monitor your credit score. Your credit score is a numerical representation of your creditworthiness and is based on information in your credit report. It is used by lenders, landlords, and other parties to determine your eligibility for credit and loans, as well as the terms and interest rates you may be offered. Regularly checking your credit report will allow you to see if there have been any changes to your score and to address any issues that may be impacting it.

Another reason to check your credit report every six months is to identify and address any errors or inaccuracies that may be present. While credit reporting agencies do their best to ensure that the information in your credit report is accurate, mistakes can still occur. Checking your credit report regularly will allow you to catch any errors, such as incorrect account information or duplicated items, and to dispute them with the credit bureau.

Additionally, checking your credit report every six months can also help you detect and prevent fraudulent activity. Identity theft is a common form of financial fraud and can have a severe impact on your credit score. By regularly checking your credit report, you can quickly detect any suspicious activity, such as new accounts or inquiries that you did not authorize, and take steps to resolve the issue.

It’s easy to get a free copy of your credit report from Borrowell By Clicking Here.

In conclusion, checking your credit report every six months is an important step in maintaining and improving your credit. It allows you to monitor your credit score, detect errors, and prevent fraudulent activity. So take a few minutes every six months and request for a copy of your credit report to ensure you can keep an eye on your financial health.

Can Debt Relief Hurt Your Credit

Managing debt is not the same as managing your credit. Debt negotiation, debt consolidation, bankruptcy and refinancing a loan all involve some form of change to your credit score. However, these changes don’t always have negative effects on your credit report. In this article, we will look at how each of these methods can affect your credit in different ways.

Debt Negotiation Can Hurt Your Credit

Debt negotiation is a way to settle debts with creditors without filing for bankruptcy. It can be a good option if you are having trouble paying your bills, and it can be a bad option if you want to keep your credit score intact.

Debt negotiations are conducted by third-party companies that work on behalf of consumers looking to reduce their debt burden. The company negotiates with the creditor and makes them an offer they cannot refuse: an amount less than what is owed, but still more than they would receive in court if they went through official proceedings (which often results in garnishment). If accepted by both sides, then everyone goes home happy.

Debt Consolidation Can Hurt Your Credit

Consolidating debt can be a great way to pay off your debt and get a fresh start, but it’s not the only option. Before you consider debt consolidation, make sure that you’ve exhausted all other options. If you have good credit, it might be better for you to use a personal loan or line of credit instead of consolidating your debts into one loan with higher interest rates.

When considering consolidation, make sure that you understand what will happen if you don’t repay the money in full on time. You should also know what kinds of fees might come along with this type of loan before committing yourself to an agreement like this.

Bankruptcy Can Hurt Your Credit

Bankruptcy is a legal action that can be taken against you in the event of financial hardship. It’s rare for debt relief to hurt your credit, but bankruptcy certainly can—and it can stay on your credit report for up to 10 years after being filed!

Bankruptcy can make it harder to get a loan or an apartment and can make it harder to get a job. The impact of bankruptcy is lessened if you have been diligent about paying off other debts during the period between filing for bankruptcy and having it discharged, but even so many landlords will still check a prospective tenant’s credit history before deciding whether or not they want them as a tenant (and some landlords may not rent at all).

Refinancing a Loan May Hurt Your Credit

If you are in the market for a new loan and are considering refinancing your debt, there are several things to consider. Do not assume that every lender will report their loans to the credit bureaus or that they will report them in an accurate manner. While some lenders do report their loans according to guidelines, many do not. Some lenders may report for only a short period of time, while others may never report at all!

These factors can be important when it comes down to getting approved for another loan or financing option because most financial institutions take into account your overall credit score when determining whether or not they want someone as their customer. If you have gaps in your history where no one knows what has happened over those years, this could cause problems with obtaining additional financing options later on down the road since having no information about how well managed your finances were during those periods gives lenders little assurance about how good of a risk you actually may be worth taking on board as one of their clients.”

Managing debt is not the same as managing your credit.

  • Credit is a record of your financial history. It shows how you’ve managed credit cards, loans and other debt over time. Your credit score is a number that represents your creditworthiness as determined by the information in your credit report.
  • A good credit score can save you money on interest rates when you borrow money (for example, to buy a car or house). A low or bad credit score may make it difficult for you to get loans or credit cards at reasonable rates without paying higher interest rates than someone with better-than-average scores.


Debt relief is important when you’re struggling to manage high debt. However, it can also affect your credit score. This is why it’s important to consider all of the options available before deciding on a debt relief option that will help get your finances back on track.

Free Credit Report Borrowell


You may not realize it, but your credit report is probably the most important financial document you own. It dictates how much you pay for things like car loans and mortgages, whether or not you can get approved for new credit cards and loans, and even if you’re eligible for certain jobs. The more time goes by without checking your credit report, the higher your risk of making mistakes that could cost you big bucks down the road. In this guide we’ll show you where to go to access your free credit score and report in Canada — as well as how to read it so that no matter what grade score you land on (or don’t), there’s always room for improvement!

For those of you who don’t know, a credit report is a document that provides information on your credit history and shows whether or not you have any outstanding debts. Your credit score is a number generated by looking at your history, which lenders use to determine whether or not they should offer you loans.

Credit Score vs. Credit Report

Did you know that your credit score is not the same as your credit report? Credit score is a three-digit number between 300 and 850. It’s based on the information in your credit report, but it’s used by lenders to determine whether or not to lend you money or give you a loan. Your credit report is a history of all of your credit activity, including things like paying bills on time and using too much of your available credit (what’s called “maxing out”). A snapshot of this information can be found on any website that provides free access to detailed reports; however, most sites will only provide partial information. The best way to get an accurate picture of where you stand financially—and take steps toward better financial health—is by requesting a full copy from Borrowell.

Why check your credit report?

Checking your credit report is important for a number of reasons:

  • You can see if there are any errors.
  • You can see if you have been denied credit.
  • You can see if you have been overcharged for credit.
  • You may be able to spot unauthorized accounts or collections on your report that need to be removed, which will improve your score and help you get approved for more things in the future (like an apartment or car loan).

Where to access your free credit score and report in Canada

There are a few ways to do this, but we’ll review the most common option today:

Use Borrowell This service let users sign up for an account online and then provide immediate access to their scores and reports at no cost.

How to read your credit report in Canada

Credit bureaus are the companies that keep track of your credit history. They evaluate how you’ve used your credit and assign a score to help lenders better assess whether they should give you a loan or not.

Here’s how to read your credit report in Canada:

  • Understand the difference between a credit score and a credit file

A “credit score” is an artificial number assigned by one or more companies that keeps track of how well you manage money. A “credit file” is what the company uses to calculate this number; it includes all details about past loans, any unpaid bills, and any court judgments against you (even if they’re settled). If there are errors on either one, it can affect whether you qualify for financial products like loans or mortgages at fair interest rates.


In the end, it’s important to remember that your credit report is a snapshot of your credit history. It’s used by lenders when deciding whether or not you qualify for loans and credit cards, so it’s worth checking at least once a year. You can do so through Borrowell—a company that offers free access to your credit report.

If you want to take things a step further and ensure your score stays high all year round, consider using one of these tips:

  • Pay off debts on time every month. Don’t miss any payments!
  • Try to get some positive items on your accounts (like making all payments on time). If there aren’t any positive items already on the account, see if there are any negative ones that could be removed by calling in or sending an email directly from their website (more details below). These types of reports give lenders an idea about how responsible someone has been with their finances overall—and since they’re used as part of calculating scores for everything from loans and mortgages down through small business financing options like SBA loans (which help entrepreneurs start up new businesses), having good qualifications here can make all kinds of difference when applying for credit products down the road!

Everyone should check their credit report at least once a year, you can do it for free through Borrowell

With Borrowell, you can check your credit score and report for free. You’ll get a better understanding of where things stand so you can make informed decisions now, and in the future.

This is a great way to start planning for your next big purchase or financial goal!

How? We’re glad you asked:

  • Sign up with Borrowell . This takes about 5 minutes total – don’t worry if you don’t have an existing account with them.
  • Once this step is complete, log into your dashboard . On this page you’ll see information about how lenders view each aspect of your credit score and how it could affect your ability to borrow money (or not). If there are any changes since last year’s scorecard was generated they’ll be highlighted here along with explanations as needed.”


There are many ways to improve your credit report and score, but the most important thing is that you do it. It’s always good to have an idea of where you stand so that you can take steps towards improving your situation. If you’re looking for more information about how to manage your money, check out our blog!