The Top 3 Signs of Improper Credit Card Use Are:
You make huge payments on pesky fees and charges, like late payment penalties, overdraft fees, fines for declined transactions, and other finance surcharges. After all, cardholders only incur these charges if they don’t handle their existing lines of credit responsibly.
For instance, you will only incur late payment penalties and surcharges if you often skip or miss out on your credit card bills. Moreover, your interest payments will balloon out only if you’ll submit just the minimum amount due to your card issuer, on a monthly basis.
Meanwhile, you will only worry about getting penalized with overdraft and declined transaction fees if you’ll max out or go overboard with your credit card charges. Furthermore, you will just incur steep finance charges if you’ll abuse the additional features, like the balance transfer and cash advance facility that come with your unsecured or secured credit cards.
This goes to show that if you’re keen on keeping your credit payments minimal then, you should steer clear from habits that will cause damage, not only to your credit history, but also to your personal or household budget.
You suffer from limited financial prospects, due to your poor credit score. Have you seen the latest copies of your annual credit report? How’s your credit rating? If you think your score is lower than what is considered acceptable by industry standards then, that’s a clear indication of improper credit card use.
So, as early as today, we encourage you to take a close look at your spending habits. Ask yourself the following queries: What percentage of my spending cap do I use on a regular basis? Do I spend within or beyond the limit imposed on my card account? How many card accounts do I manage, at the same time? Do I still have plans to apply for more? Keep in mind that the answers to these self-assessment questions will help you identify the reasons behind your poor credit standing so that you can work on them, immediately.
In time, the changes you will make in the manner by which you handle and use your current lines of credit will help improve, not just your credit history, but also your financial prospects for this year.
Your application for another line of credit got turned down, even though a creditworthy individual co-signed your request for a credit card account. After all, such decision from your target card issuer shows that the high credit score of your cosigner was not enough to pull your credit rating up and boost your likelihood of being granted the unsecured credit cards you wish to use.
In such situation, it would be best to seek professional advice before filing another credit application. Keep in mind that a certified finance expert can help you identify the reason for your credit problems and help you find a suitable solution to repair your credit history. And by following his/her suggestions, we guarantee that in time you will recover your good credit standing and soon enough, you will qualify for excellent and affordable card programs.
About the Author
Emma Lee is a financial consultant and a freelance writer. She has more than 15 years of experience in helping consumers find the best credit cards. She regularly contributes articles to Secured Credit Card Site to provide readers the latest information about secured, prepaid and unsecured credit cards as well as the latest trends in financial management.