3 Hobbies That Can Hurt Your Credit Score

BANGALORE: Everyone needs to relax in this busy and hectic world, thus finding a way to relax is essential. Picking a hobby you enjoy and engaging in it regularly is a great way to wind down from a tough week.

But if you are not careful, there is a chance your favorite diversion could hurt your credit score. Below are some popular pastimes that could put your score in risk if you make the wrong moves.

Go through these tips to keep your credit on the straight and narrow, no matter how you like to spend your free time:

1. Shopping

Yes it is true that shopping for a new outfit and then scoring a great deal on it provides a lot of satisfaction. And with online shopping, it’s become now easy to engage with this hobby whenever you feel like.

But this can be a blessing and a curse when it comes to your credit. A part of your score is determined by amounts owed, and your credit utilization heavily influences this category. Your utilization is calculated by dividing the outstanding balance on your cards by the total amount of credit you have available. If you’re doing so much shopping with your credit cards that your credit utilization ratio meets or exceeds this threshold at any point during the month, your credit score could take a hit.