Maxing Out Your Credit Cards
Just because you have a high limit on different cards doesn’t mean you should be spending that much. In fact, that’s the last thing you want to do. If you maxed out your cards, then your credit score is likely to suffer.
With maxed-out cards, it likely means you won’t be able to pay off the total bill and you will not only be making this mistake, but also the first mistake on this list. Be responsible when it comes to credit cards and only spend what you can afford to pay off in full. Shopping around for lower interest rates can be helpful if you do need to put more on your cards than what you can afford to spend.
Using a Card Overseas with a Foreign Transaction Rate
This is just wasting money and, while it may not hurt your credit score as much, why waste your money? With a little research, this can be avoided. You can easily find a credit card company that won’t charge any foreign transaction fees.
Paying Late
Paying late means that you will have more fees and, if you fall more than 30 days behind, it will also impact your credit score. If you fall more than 60 days behind, then your interest rate will also be driven up. Set up payment reminders in order to pay your bill on time and avoid unnecessary fees.
Waiting to Report a Stolen or Lost Card
The longer you take to report a stolen or lost card, then the longer the thief has to charge up on your account. If you report the missing card before any fraudulent charges are made you won’t have liability for the charges.
Keep track of your cards and, if you are using an online account, log in more than just once a month to make a payment so you can see if any fraudulent charges are being made. This will help you get ahead of the game.
Lisa Kroulik is a freelance content marketing writer with eight years of experience. She has a special interest in helping readers make sound financial decisions and financial recovery topics. After having filed bankruptcy in 2008, Lisa took the opportunity to make a fresh start and learn from her mistakes. Today she has a credit score of 830 and no debt other than a mortgage.
