Maintaining a good credit habit is crucial for your financial journey. Unfortunately there are mistakes you can make.
1. Paying late: Your payment history is the most important credit factor. Always prioritize paying on time.
2. Paying less than the minimum. Ideally you should pay your balance in full. Paying below will drastically hurt your score.
3. Failing to pay for over 60 days can impose a hefty penalty interest rate. It will take years to get it off your record.
4. High balances. A credit utilization of less than 30% is good for your score. Any higher and it could hurt.
5. High debt. If you are overspending and accumulating a lot of debt, you could seriously damage your score.
6. Canceling old cards. The length of your credit history will get hit. Keeping them active will help you boost it.
Maintaining good credit will enable you to get approved for attractive cards, loans, and offers that benefit you.
Keep track of these tips when you use your card. Don't let these credit card mistakes ruin your credit.