One of the quickest ways to damage your credit score is by maxing out your credit cards.
Your credit score isn’t based only on whether you make your payments on time. It also looks at how much of your available credit you’re using, commonly referred to as your credit utilization.
Even if you’ve never missed a payment, carrying high balances on your credit cards can significantly lower your credit score.
Keeping your credit card balances low doesn’t just help when buying a home—it can improve your chances of qualifying for many types of financing and may help you secure more favorable interest rates.