Bad credit habits can wreak havoc on your credit score, lead you into debt, and cause many other financial problems. These problems threaten your stability and long-term goals. Consider your credit habits, and if you’re doing any of these, replace them with a better habit right away. Don’t just check your credit card statement for your balance and payment information. Review the entire statement to verify your account activity. Report errors to your credit card issuer right away to prevent being held liable for charges you never made. A quick phone call or tap on your smartphone app will quickly confirm that you have enough available credit for your purchase. Plus, it saves you the embarrassment of having your credit card declined if that you don’t have enough available credit. Send more than the minimum if you can or at the very least, pay the amount required to pay off your balance in 36 months, which is also printed on your billing statement. You’ll save money on interest, plus you put yourself closer to having your balance paid off completely. Paying on time saves you money in late fees and higher interest rates. Plus, it protects your credit from the effects of late payment. Balance transfers typically have fees that will increase your overall balance if you’re never making payments toward the transfer. And if you’re making purchases on the card with a balance transfer promotion, you’re compounding the problem. Credit card issuers make the rules in this game. Eventually, they’ll make a move that will kill your strategy—your available credit won’t be high enough for the balance transfer, you won’t qualify for the promotional rate, or worse, your application will be denied altogether. Your credit cards should never be a source of cash, so if you’ve fallen into this habit, stop right away. Figure out a way to cut back on your spending, so you have more cash from your salary or wages, and you won’t have to rely on your credit cards for cash. Before you swipe for a purchase, always assess whether you can truly afford it. If you can’t, be brave enough to deny yourself the instant gratification for a financial peace of mind later on down the road.
