Definition:
A maxed out credit card refers to a credit card with a balance at, very near, or even over the credit limit. For example, if your credit limit is $1,000 and your credit card balance is $1,000, your credit card is maxed out.
When your credit card is maxed out, you may not be allowed to make additional charges until you pay down the balance. If you do exceed your credit limit, you risk an over-the-limit charge and an interest rate increase.
Your credit score could go down in response to a maxed out credit card since 30% of your credit score is based on how much of your available credit is being used.
