11 Bad Credit Card Habits to Avoid

If you use your credit cards responsibly, they can serve as fine financial tools. Credit cards can help you get rewards on your everyday spending. Also, you’ll be able to establish credit with a positive payment history. However, if you don’t use your credit card wisely, you’ll end up with debt and poor credit score. Low credit scores will eventually make you look for a bad credit merchant account whenever you need one.

Even if you have poor credit, there’s still light at end of the tunnel. With a reputable payment processor specializing in the high risk field, you can obtain a bad credit merchant account without challenges. Besides, the right specialist will offer you the lowest possible rates and the best merchant services tailored to your business needs.

So, what shouldn’t you do?

1. Don’t Fail to Read Your Credit Card Statements

Just checking your credit card statement for your balance and payment information isn’t enough. Read the whole statement to verify your account activity.

2. Don’t Carry a Balance on Your Credit Cards

Do your best to pay your balance in full each month. Otherwise, you’ll have to pay interest and lose the benefits of a positive payment history.

3. Don’t Use Credit Cards to Pay Off Other Debt

You can use balance transfers to pay off only high-interest credit card debt. Even if this is your case, pay off the balance without delay not to end up with interests. 

4. Don’t Keep Your Credit Utilization High

Avoid running your balance too high. Keep your credit utilization below 30%. Making multiple payments on the card during the month to keep the balance low is an option to consider. 

5. Don’t Apply for the Wrong Card

Don’t apply for a credit card without checking your credit score. As long as your score is below 650, consider applying for a secured credit card that can help build your credit.

6. Don’t Fail to Set a Budget

How much do you take home each month? What are your expenses? After figuring these things out, create goals to keep your spending under control. However, if you’ve already spent more than needed to pay down some debt, use a balance transfer credit card or personal loan for a lower interest rate.

7. Don’t Leave Your Online Account in Ignorance

Make sure to check your online accounts during the month. See whether there’re any charges you don’t remember making. Even if you deal with online fraud, you’ll be able to stop it before everything gets worse. 

8. Don’t Pay an Unnecessary Annual Fee

Do you have a credit card with an annual fee? If yes, find out the amount you’ve earned in rewards over the last year. Subtract the annual fee from what you’ve earned. If it’s low or negative, consider using a card that doesn’t have an annual fee.

9. Don’t Pay Your Credit Card Late

Don’t make it a habit to send your credit card payments late. Pay your credit card on time.

10. Don’t Apply for New Credit Cards You Don’t Need

New credit card applications can damage your credit score. Moreover, you can also get into debt because of them.

11. Don’t Let Credit Cards Remain Unused

If this is your case, many credit scoring formulas will disregard them in your credit score. Moreover, your credit card issuer may cancel your credit card if you haven’t used it for several months.

Go through the above-mentioned credit card habits to make sure you’re not doing them. By replacing bad credit card habits with good ones, you can use your credit to your advantage.

Author Bio: Electronic payments expert, Blair Thomas, co-founded eMerchantBroker. His passions include producing music, and traveling to far off exotic places. eMerchantBroker is America’s No. 1 bad credit merchant account company, serving both traditional and high-risk merchants.

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