Credit scores can be harmful to your financial well-being

Primarily driven by FICO ratings, these scores prioritize lenders over consumers. You’ll gain points for having multiple credit cards and diversifying with loans like car or mortgages. However, exceeding 30% of your card limit can hurt your score. For young individuals with low limits, this system encourages taking on more debt. Timely bill payments or paying off balances won’t significantly boost your score; you could maintain a high rating just by making minimum payments—resulting in prolonged debt and accruing interest.

Source: https://www.ft.com/content/f6f71a95-9e43-41c3-9a53-f577d31832a4