Poor Credit Card Habits To Avoid in 2020
2020 is the perfect year to say goodbye to your poor credit habits. By doing so, you can gradually regain your good credit standing and soon you can receive and enjoy excellent financial prospects. Still, this question remains unanswered: which poor credit habits should I steer clear from, this year? To find out the answer, please pay close attention to the remainder of this article.
3 Habits You Should ABSOLUTELY Avoid
Missing out or skipping on your monthly dues. Did you know that payment delinquency, that is skipping or missing out on your financial obligations, such as your online store credit cards guaranteed approval bills and your monthly loan payments, can be disastrous, not only to your credit history, but also to your personal finances? How? First and foremost, being delinquent on your dues can inflict severe damage to your credit history. In fact, it can cause your credit score to drop, which can in turn ruin your chances of qualifying for affordable credit programs, later on.
Second, payment delinquency can cost you a great deal of cash, in the form of late payment fees and huge interest charges. And these pesky fines and penalties will surely eat up a significant percentage of your personal or household budget, which is something you could have allotted for more important expenses and bills. Hence, to avoid these problems, we advise you to do your best to keep up with your financial obligations. If you find it hard to remember when your bills are due then, you can simply set up personal reminders and alerts or mark your calendar with your payment schedule. That way, you can be reminded when a payment should be a made, and, at the same time, you can prepare the funds you need to settle your bills prudently and completely.
Maxing out your credit card. We also advise our readers to avoid spending beyond the limit or cap imposed on their respective accounts. Always remember that this habit will not only cost you cash, in the form of overdraft charges and declined transaction penalties. It can also pull your credit score down and affect your chances of being granted affordable lines of credit, should you decide to apply for them in the coming months. So, before charging an expense on your online store credit cards guaranteed approval, make it a habit to check the available balance on it. If you think that you have more than enough funds to cover an important purchase or bill then, you may proceed with your transaction. Otherwise, you may have to pay for the items you intend to buy in cash.
Applying for and using multiple credit cards, at the same time. Submitting multiple applications for various lines of credit, at the same time, can also inflict severe damage to your credit history. That’s because such decision can cause your credit utilization to rise, which can in turn pull your credit rating down. Meanwhile, handling several credit cards and loans can increase your risk of incurring a debt you may soon find very difficult to pay back. Hence, to avoid falling into debt traps and to maintain a solid credit profile, you should resolve to sign up for and use AT MOST two lines of credit, for any given time.