Free Credit Repair Help: Don't Make These Mistakes with Your Credit Cards

A Credit Article Contributed by Brandie King

Free Credit Repair Help: Don't Make These Mistakes with Your Credit Cards

This article provides free credit repair help in the form of teaching you what mistakes to avoid when using credit cards.

Free Credit Repair Help: Credit Card Mistake #1 - Late Payments

Making your payments on time is the most critical factor in determining your FICO (credit) score. In addition, credit companies have the right to raise your interest rate if you are late making your payments. This makes paying on time one of the single biggest things you need to concentrate on.

At the very least pay the minimum amount due each month on each of your credit cards. Ideally you should pay more than the minimum whenever you can. If you have trouble getting your payment in on time through the mail, check with your bank and credit card companies to see if they offer online bill payment features. Using online bill pay ensures that your payments get there when you want them to.

Free Credit Repair Help: Credit Card Mistake #2 - Going over the Limit

Going over your credit limit has two major consequences. The first is that you are charged an over-the-limit fee than can be $35 per incident or more. The second is that charging your card up past the limit also gives the credit card company the right to change your interest rate.

Free Credit Repair Help: Credit Card Mistake #3 - Thinking Your Credit Card is an Atm Machine

Your credit card is not an ATM machine so don't treat it like one. The fees on an ATM machine are cheaper than the interest rate you will pay for using the cash advances features of your credit card. And the credit card company will love you for taking out cash advances because not only are the interest rates on them usually 20% or more, but they make you pay your regular balance off first which means that you pay the higher interest rate for longer.

Free Credit Repair Help: Other Credit Card Mistakes

Do not co-sign on credit cards for your friends or family. Doing so is akin to sharing their toothbrush. Any mistakes they make become your mistakes because since you co-signed on the card it shows up on your credit report too, not just theirs.

Don't make the mistake of using a home equity loan to pay your credit card debt. Your home is a secured debt and that means that if you default on the loan you can lose your house.

Your credit can be your best friend or your worst friend. If you take care of it, it will take care of you by letting you buy a house, buy a car, and get a job. Some employers look at your credit report to determine your reliability and refuse you employment when you have a bad credit score, so don't discount that last one. When you don't take care of it you will suffer. Don't allow credit card mismanagement to ruin your credit and possibly your life.