When we want something, the temptation is to use our credit cards to get it, even if we know we shouldn’t. Sometimes, however, we should listen to our better judgment. Here are ten times you should not use your credit card.
When You Can’t Afford to Pay the Balance
When it comes to using credit cards, the number one rule you should always follow is never to use your card if you cannot afford to pay off the balance. Charging items, you can’t afford is a sure-fire way to tank your credit score.
If You Don’t Know Your Available Credit Balance
While many banks have replaced credit limits with spending limits, this does not mean you should exceed your credit balance. Exceeding your credit balance may lead to huge fees from lenders. Also, maxed-out credit cards hurt credit scores.
When You’re Near Your Credit limit
Always try to stay at least a few-hundred-dollars away from your credit limit, as otherwise, it may negatively impact your credit score.
If You Receive Notice That Your Interest Rate Will Go Up
When a credit card company sends a notice informing you that they are raising your interest rates, this is, in essence, a plea for you to stop using your cards foolishly. Should you receive a notice, stop using the card, call your credit card lender and negotiate a new rate, or switch cards.
If You Use One Card to Pay Off Another Credit Card
Paying one card off with another is debt swapping, which is bad for your credit score. If you swap debt every six months, this may impact your credit score.
When Your Only Concern Is Getting Reward Points
When purchasing with a credit card, rewards should never factor into a decision to buy or not. The reasoning behind this is that focusing on maximizing rewards often leads to overspending what you can afford.
On Foreign Websites
If you are shopping on a website with a different extension, always avoid using a credit card, as thieves may steal your details. Always be aware of who you are dealing with and be confident that the retailer’s site is secure and legitimate.
Impulse buys are one of the fastest ways to destroy your credit. Don’t just follow your heart, be careful with all credit purchases and take a step back and ask, “Do I need this?”
If You Are Trying to Build Your Credit for the First Time
Building credit is essential, but so is keeping your balance in check. If you are building credit, always be sure to pay off your balances in time, or else your credit score will decline, not rise.
If You Are Trying to Rebuild Your Credit
Similarly, be careful with your credit cards when you are attempting to build your credit score. Always try to keep your credit spends below 10 percent of your limit and be prompt with all payments, otherwise, you won’t see the results.
Finding the Right Solution for Your Credit Card Problems
If you find yourself struggling with credit card debt, the good news is that help is out there. We can help and do all the tough work for you! Talk to one of our debt experts about how to get rid of credit card debt. Chat with one of our debt experts by calling 866-858-3384 and get started today.