As a credit card holder, you should know how important it is to keep your account current. Credit card companies report to the credit bureau for as much as three times in a month. So if you want to maintain that good credit record, here are some Don’ts.
- DON’T miss a single payment. If you are the forgetful type, establish a reminder system. If you can, then pay full amount of your credit card debt and not just the minimum amount due.
- DON’T max your credit card. Using at least 30% of your credit limit will certainly earn you a nice credit score. Imposing a limit to your usage will benefit you in the long term.
- DON’T keep your credit card unused. Make small transactions once in a while to show activity. It does not actually look good if your account is stagnant. Remember moderation is the key.
- DON’T apply for too many credit cards. If you have one or two, then that should be enough. It will be easier for you to manage, track and use.
- DON’T apply for a regular credit card if you are not ready. There are secured credit cards and debit cards that can offer you the same benefits of regular credit cards with less risks.
Knowing how to manage your credit cards may be the most important step towards building that ideal credit record. True, it may take a while but it is guaranteed to get you there.
This entry was posted on Tuesday, February 13th, 2007 at 9:50 am and is filed under General, Credit Advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
[…] Original post by donimar […]
Thanks for the information.
The key to credit problem is discipline. Be punctual, pay your bill on time because late payments, collections, and bankruptcies have a big negative impact on your credit score.
You are right Shiela! Discipline and time is all you need to establish/reestablish your credit!
With the high interest attached to credit cards, they are like predatory lending. Using a credit card wisely is crucial. Not only will poor management result in excessive debt, your credit will be adversly affected.