Credit Card Habits to Avoid – At All Cost

Here are things and habits you must avoid when managing a credit card account:
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  • Paying your bills late can inflict severe damage to your credit history. After all, records of payment delinquency can be retained in your credit history for as long as seven to ten years. And such item can chase away prospective lenders and ruin your chances of being granted affordable credit deals, later on.

Hence, we encourage credit cardholders, like you, to keep up with their payment schedule. Set up personal reminders and alerts in your mobile gadgets so that you can easily remember when a payment is due. Better yet, you can sign up for automatic payment arrangements with banks nearby. That way, you can avoid missing out or skipping on your credit card payments.

  • Submitting just the minimum amount required by your card issuer. After all, this habit can cause your interest payments to balloon out and soon get way out of hand. So, to keep your interest payments minimal, we suggest you submit complete payments to your card issuer, each month.
  • Maxing out your credit cards by going overboard with your transactions. There are plenty of disadvantages associated with this habit. First of all, spending beyond your credit limit can cause your debt-to-limit ratio to rise and your credit score to drop. Second, it can cause your succeeding transactions to get declined. Third, maxing out your line of credit can cost you substantial funds, usually in the form of overdraft charges and declined transaction fees.

Now, to avoid such problems, we advise you to use your credit card responsibly. See to it that you stick to your spending limit or cap and be sure to resolve to use at most 30% of the credit limit imposed on your personal credit card account.

  • Abusing the cash advance facility of your credit card. Did you know that withdrawing cash from your credit card account, on a regular basis, can get you penalized with steep finance charges? This is the main reason why we advise you to use this facility sparingly. In fact, it is highly-recommended that you use the cash-advance feature of your credit card only if it is absolutely necessary.
  • Signing up for more than two credit cards. Always remember that collecting credit cards, especially those which carry extremely high rates of interest can cause you huge problems. First and foremost, they can increase your risk of incurring a huge financial obligation you may soon find very difficult to pay back. Moreover, they can cost you a great deal of cash, in the form of huge interest payments, which can eventually ruin your personal or household budget.

Hence, you should heed the advice of finance experts and manage AT MOST two credit cards, at a time.

  • Signing your contract without reading first the stipulations of the document. Keep in mind that one hasty decision can leave you with a credit card program that may not match your needs, spending habits and budget. So, instead of rushing, you should take the time to review your contract several times before making up your mind and signing the document. And in case you have queries, don’t hesitate to approach one of the credit card agents and ask for more information. That way, you can avoid having regrets, later on.


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Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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