• Facebook Facebook
    • Twitter Twitter
    • RSS Feed RSS Feed
  • Home
  • Blog
  • Credit Card News
  • Questions

Home > Credit Card Blog

5 Things Not to Do With a Credit Card

September 19, 2011 - 7:44 am

Applying for a new credit card should serve as a reminder for all consumers to take a refresher course in what you should and shouldn’t do when it comes to a consumer credit profile. Just one mistake concerning personal finances can produce long-lasting consequences that can hurt you financially.

Here are some of the basic concepts of what not to do with your credit and credit cards. All consumers need to review this information to ensure your credit stays on track and in your favor:

Do Not: Submit Too Many Applications for Credit

Every time a consumer submits an application for credit, it has an impact on a credit score. With multiple credit cards applications being submitted in a short period of time, credit scores can actually take a nosedive. Lenders do not look kindly on a credit history showing multiple requests for credit. It does give the consumer an appearance of being reckless with financing. If you are serious about getting a new line of credit, review the many cards on the market and find the ones that make sense for your lifestyle and financial needs. Don’t apply for just any card offer arriving in your mailbox and don’t submit applications simply because your circle of friends has certain credit cards.

Do Not: Spend on Credit Without a Budget

The number one reason consumers find themselves involved in a credit mess is due to the fact they have not established a budget for spending. Credit cards can make it easy to overspend without immediate financial consequences – or so it seems. It is essential to have the cash in savings for every purchase you make on credit. This will ensure you are able to pay the full credit card balance in full each month. Carrying over a balance month after month is not only costly it is also harmful to one’s credit.

Do Not: Use Credit as an Extension of Income

Many make the mistake of thinking their credit limits work like extra income. This is a bad perspective to have of your credit life. It is essential that big-ticket purchases be added to a savings goal plan rather than impulsively extending – or overextending – credit.

Do Not: Make Late/Miss Payments

If you want to bring down your credit score significantly, don’t pay you credit card bill for a month. If you are using a credit card to rebuild credit, it is important that all payments are timely and if possible, made to cover the full balance. Information about your credit card accounts is routinely reported back to the credit reporting agencies and negative information will bring down credit scores and create a long-lasting history of irresponsible financial behavior.

Do Not: Close Multiple Accounts

If you take the time to sit down and analyze your finances only to discover you have too many credit card accounts that are not benefitting you, it is important you don’t close down all of the accounts at the same time. Doing so can drop your credit score as your credit ratios are changed. Instead, consider which accounts you do not want anymore and close them over time. You may also want to allocate a purpose to each card to ensure you are using them to your advantage and benefitting from the rewards and incentives being offered.

Credit cards can do a lot to boost one’s credit status but just a few mistakes and they can have the opposite effect. It is important to pay attention to your accounts, your payments, and your credit card spending habits. If temptation proves too much for you, utilize only one card for small purchases and regularly pay off the full balance each month to improve your credit standing and cut down on credit card expenses.

Similar Posts

  • The Don'ts of a Credit Card
  • Tips for Managing Multiple Credit Cards in Your Life
  • Trying to Boost Your Credit Score? A Credit Card Can Help
  • What Happens If I Never Established a Credit History?
  • Your Credit Score And Three Things You May Not Know That Can Cause It To Decrease
  • Recent Posts

    • Why Stay-at-home Moms Created a Petition against the 2009 Card Act
    • Credit Card Rates Stand at 4 Year High Mark
    • Average Credit Card Rates in December 2011
    • Obama Proposes Initiative for Making Credit Terms Easier to Understand
    • Aggressive Cash Back Credit Card Deals for the 2011 Holiday Season
  • Categories

    • Credit Card Blog
    • Credit Card News
    • Featured Articles
    • Spotlight

Home | About | Credit Cards | News | Blog | Questions


Privacy Policy | Terms & Conditions


Copyright © 2011 ApplyForACreditCard.com. All rights reserved.

By using our service and providing your personal contact information, you agree that ApplyforaCreditCard.com, any of its affiliates and any company you are matched with may contact you by any method of communication, including by telephone even if you are on a federal or state Do Not Call registry. This site is a free matching service intended to provide a variety of options and information, and is not responsible for any service/information provided by any third party provider. ApplyforaCreditCard.com is a marketing and advertising agency only. It does not supply the service provided for therein, rather it provides a matching service. Upon your submission of the information requested on our website, we re-direct you to one or more of our participating service providers. You are under no obligation to pursue business with any of the participating service providers in our network. We encourage you to review each service carefully before electing to do business with them. Further, you should review their privacy policy and terms on the their page and contact them directly regarding their organizations' policies.


The content, including without limitation any viewpoint or opinion, contained in any article or video posted on this website is for informational purposes only and does not necessarily reflect the opinion or viewpoint of ApplyForACreditCard.com. Any third party contributor to any such article or video has been compensated by ApplyForACreditCard.com for such contribution. It is advised that you conduct your own investigation as to the accuracy of any information contained herein.