Factors That Credit Card Companies Look at When Evaluating an Application
Everyone has some kind of credit card in their wallet. They are using it for food, entertainment or things that really shouldn't be placed on a card. All of us are guilty of misusing our cards at one point in time. It's hard to admit, but it does happen and we are hating ourselves for letting it get that bad. Our cards can ruin our lives if we are not careful and don't see the warning signs. You have to be mindful of how use your cards. It can't be because you want everyone to know you are carrying an important card. Here are some things not to do with a credit card.
Pay attention to the limit you are given on your card. Don't take it for granted and don't start spending until it's all gone. Learn to reserve your limits for other things like emergencies or maybe business expenses. A large limit almost makes us feel like we are wasting it and it needs to be spent. Don't let any limit on your card make you think that you have to burn through it because it is available. Limits can be shorten if your card's bank feels you are using it improperly. One minute you might have $30,000 to spend and now you have only $3,000 because you keep pulling cash off the card every where you go.
Never let anyone have your card without your knowledge. Cards are not meant to be shared with friends or family. You are opening up a can of worms for trouble if you get into the habit of handing over your card to friends. This is one of the biggest mistakes you can make when owning a card. You will find yourself being responsible for someone else's purchases that they have discarded or refuse to pay. Never put yourself in this position as you can quickly destroy your credit that you worked so hard to keep up and maintain. Sharing your card is never the best idea when someone needs money or help paying a bill.
It can't be stressed enough that you only really need one card in your purse. There is no reason to be walking around with stacks of cards in your wallet. You are either trying to show off or could have credit addiction that you can't shake. No amount of cards in your wallet will make the debt go away once you use them. Having a line of cards has no business in your financial life. If anything, it will send you down a road that is not pretty and you will live years trying to get from under the enormous debt. Make it a rule to stay with one card only even if you are offered several a week. The person who has racked up substantial debt is probably the individual who has more than one card. It's hard to fall in debt with one card, but several will put you in line to creating debt you will regret.
We have all been bombarded with card offers until we can barely get through our email. Card companies are trying to lure us in with all types of deals that we can't resist. The best way to handle these offers is to resist and don't take them up on whatever they are selling. You will thank yourself years from now after you have turned down an offer that could have killed your comfortable financial living. Never think there is some obligation you owe to your bank that is offering a card as well. Politely decline the offer and ask them to take you off the list so you don't get any more.
You should never take a card offer from a store while at the register. Many of these credit cards have high interest rates turning your billing into something that you would have never dreamed of paying. This means a simple T-shirt can come out costing a lot more because of the fees on these cards. Many people often think it's great to have a card at their favorite store when its not. You are only adding to the debt you have and this card will make things a lot worse. If you find that someone has signed you up for this card, you need to quickly disputed it. Get it off your credit report immediately, because if you don't, you'll get dinged for it not getting paid.
There are many things to not do with your credit cards in your wallet. Use some of these tips to figure out where you are going wrong with using your cards. Don't go over the limits just because there is one. Never share a card with anyone no matter how much they need it.