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Using your credit card correctly will spare you from credit burdens

By Brian Anderson
Published: Thursday, September 10th, 2009

One of the credit score tips you can use to prevent your credit score from crashing is to use installment type of credit over revolving. Loans are considered to be installment credit while credit cards are revolving. It is believed that loans are mush safer to use over credit cards because the payments remain the same until you complete payment.

However, it seems that credit cards are already an essential part of anybody’s finances. Sure enough, your credit card is a useful tool. In fact, you can still raise your credit score by using both types of credit. Provided that you know when to use and manage them.

Your credit card can save you from financial downfall, but remember that it can kill your credit score if you do not know how to use it right. There are credit score tips which can help you improve your credit standing and perhaps the most effective of them would tell you to control your credit card use.

Credit card debt is one thing you should definitely avoid if you want to keep your credit report clean and your score high. Here are some indicators of credit card debt which you should avoid.

  • Credit card for basic needs
    As much as you could, and you should, take from your income payment for your basic needs. These include food, clothing and gas. If you use your credit card to purchase these things, it proves one thing: that you are in some kind of financial trouble with the lack of cash even for the most important things.
  • Balance transfers
    Consider credit score tips on when to wisely make balance transfers. In truth, balance transfers need to take place for certain situations like consolidating balances and to get lower interests. However, don’t do balance transfers juts so you can avoid credit card payments. Too frequently transferring balances send your lenders the signal that you are escaping your trying to escape your responsibility.
  • Skipping payments
    Sure, one of the credit score tips you can follow when to raise your credit score is to prioritize bills. This means that pay those which are more urgent over those which can wait a little longer. However, if you skip your bills and not pay anything at all, then you are in some trouble. Seek the advice and help of credit advisers. If you can’t handle your bills, not thinking about due dates only makes it worse.
  • Avoidance of credit card statements
    Credit card statements are a nightmare to anyone who is facing payment problems. That’s why such notices are most of the time ignored and avoided. However, ignoring them doesn’t solve the problem, rather making it worse. When you keep ignoring notices, you let your dues accumulate until you lose control of its size already. Do remember that credit notices are created to inform you of the things you have to pay extra attention to so you can avoid bigger problems in the future.
  • Charging more than you pay
    This is one of the most common mistakes people with credit cards commit. They charge and charge for things they could not really pay for. Good credit score tips would tell you that credit cards are not to be used as if they are the key to freebies.

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