B.A.F.

The erosion of financial standing often begins with a fundamental misunderstanding of credit limits. In a consumer-driven economy, it is a common fallacy to equate an “approved limit” with “disposable income.” This cognitive disconnect leads to over-leveraging, where credit utilization ratios climb toward maximum capacity without a corresponding increase in liquid assets to service the debt.

You can’t fix what you don’t understand. That’s why reviewing your credit reports is a crucial first step. You’re typically entitled to a free report from each major credit bureau, and it’s important to read them carefully