With Credit Cards, making timely payments isn’t the only thing to remember. It’s time to review your habits. Here are few examples of Credit Card behaviour that might come off as healthy but actually hurt your credit score. Let’s review:
Making A Minimum Payment Every Month
Yes, you are making a payment every month. No, it’s not enough. While this is considered ‘safe behaviour’ when it comes to Credit Cards, it gives a wrong impression of your borrowing habits. You’re struggling with your finances – that’s the impression you give.
Using A Major Chunk Of Your Credit Limit
Using up more than 60% of your credit limit shows too much dependency on credit. This does hurt your credit score adversely, even if you pay your bill regularly. Use less, pay more – stay in your bank’s good books.
Many Credit Cards And Loans
If you have a couple of loans and a few credit cards as well, this could spell trouble for your credit score. Simply because of the fact that after scouring your bank statements, lenders wouldn’t be too comfortable knowing you barely have enough to spend after making the current payments. More than one credit card? Think about it.
Applying Many Times
While the reason could be trivial, it may hurt your score pretty bad. Don’t fill too many applications across different banks if you know that there are chances of it being rejected – this hurts you more than you think.
Enlightened? Of course, you are. Take a look at our offers.