Wuestion 7 of 10 What is a reason to pay more thin the minimum payment due on your credit statement each month? It takes more time to pay off a balance. Your credit utilization rate stays the same.

Paying more than the minimum payment each month helps you reduce your overall debt faster, as more of your money goes toward the principal rather than just interest charges. This can save you a significant amount over time and improve your credit score by demonstrating responsible credit management. Additionally, when you pay down your balance more aggressively, your credit utilization rate—the percentage of your available credit that you’re using—decreases. A lower utilization rate can enhance your credit score, which opens the door to better interest rates and offers in the future, helping you save even more!