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The Absolute Worst Credit Card Mistakes You Can Make

Your financial situation is determined by your credit score, so it is important that you avoid the worst credit card mistakes people commit every day. 

Credit cards are a safe and dependable way you can build your credit, or they can be a maniacal nightmare that leaves you wondering why you even got one in the first place and land you in bankruptcy court. The cards themselves don’t build a mountain of debt, it’s you and how you use them. Before you find yourself in the deepest crevasse of debt, know what credit mistakes you should avoid at all costs.

  1. Not using them strategically
    Debit cards avoid overspending, but they can give thieves and fraudsters direct access to your bank account. A credit card puts the bank as the middleman when there are disputes with a retailer or service provider. Use credit cards for all major purchases and transactions that carry an abnormally high risk of fraud like online shopping.
  2. Missing a payment
    Do you like magic? Here’s how to see your credit score instantaneously drop 100 points: forget a payment. Make sure to pay everything on time.
  3. Maxing them out
    Your credit depends on how much credit you have available and how much you’re using. The less credit you use, the better. Spread your charges around so you don’t use up more than 30 percent of your available credit on any card.
  4. Making only minimum payments
    The only thing worse than missing payments on your credit card is only paying the minimum balance on your dues. This can indicate to the credit card companies that you are under financial stress and may stop paying your bills altogether.

Your mortgage application depends on your credit score, make sure to not affect it. Contact Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you!