Latest Credit card debt News

FILE - This undated file photo provided by NerdWallet shows Liz Weston, a columnist for personal finance website NerdWallet.com. Your credit score won’t suffer if you have a lot of credit cards and generous credit limits, though many people think that’s the case.  (NerdWallet via AP, File)

Liz Weston: Can you have too much credit?

Aug. 3, 2020 10:28 AM EDT

People who care about their credit scores tend to obsess about some things they probably shouldn’t, such as the possibility they might have too much credit. Let’s bust that myth right upfront: The leading credit scoring formulas, FICO and VantageScore, don’t punish people for having too many...

FILE - In this May 9, 2012, file photo, a Visa credit card is tendered at a store in New York's Times Square. Most of the time, using as little of your credit card limits as possible is better for your score. And yet using 1% of your available credit is slightly better than using 0%.  (AP Photo/Richard Drew, File)

Why you might not want to zero out every credit card

Jul. 22, 2020 9:28 AM EDT

In general, using as little of your credit card limits as possible is better for your score. So logic would suggest that paying off your credit cards early so that a zero balance is reported to the credit bureaus would produce the highest scores, right? Turns out, having 1% of your credit limits in use may help...

FILE - This Aug. 11, 2019 file photo shows Visa credit cards in New Orleans. U.S. consumers reduced their borrowing for a third straight month in May 2020 as the millions of jobs lost because of the coronavirus pandemic made households less eager to take on new debt. The Federal Reserve reported Wednesday, July 8, 2020 that consumer borrowing declined by $18.3 billion in May, a drop of 5.3%.  (AP Photo/Jenny Kane, File)

US consumers reduced their borrowing by $18.3 billion in May

Jul. 8, 2020 4:46 PM EDT

WASHINGTON (AP) — U.S. consumers reduced their borrowing for a third straight month in May as the millions of jobs lost because of the coronavirus pandemic made households less eager to take on new debt. The Federal Reserve reported Wednesday that consumer borrowing declined by $18.3 billion in May, a drop...