Anyone can make mistakes. Mistakes are a part of human nature and in this technology driven world of ours, some mistakes definitely have bigger repercussions than others. Making mistakes with regards to credit is more often the blunder that everyone has committed over the past couple of years. The recent global recession for example, is something that came to be from poor credit management.
But despite these, credit cards and other kinds of borrowing still fuel a lot of people’s lives nowadays. It is because of this dependence that one needs to keep a sharp eye on their credit card usage.
Some of the basic mistakes credit cardholders must avoid to avoid hurting their credit scores include:
• Asking banks or other lending institutions to lower the credit card’s limit. This is okay for people who do not have balances on their cards. In fact, lowering one’s credit limit will enable the user to be more in control of their credit spending. But when the card is full of outstanding balances, a lower limit will lessen the gap of what you owe and what you have.
• Making late payments will always be damaging to one’s credit scores. Passing out payments for a few days or worse, not making due payments at all will seem to be a sensible short term solution but will only hurt one’s scores in the future.
• Paying one credit card with another. Credit in payment for credit will always be a bad thing to do and this will reflect in the credit card scores.
• But so too is applying for a new credit card when one already possess many. More credit cards mean more temptations that will make one spend. More cards mean more rates to be handled; more balances to be paid out and more damage to one’s credit score in the future.
Avoiding all of these basic blunders is very important to be able to successfully manage credit accounts and not hurt the user’s credit score in the future.
