Syracuse (WSYR-TV) - If you are a frequent user of credit cards, you know the bills can add up quickly. So what are the three major mistakes you need to avoid?
There are obvious mistakes, like late payments or not paying at all, but there are some that are less obvious that you should definitely avoid.
First, don’t max-out your credit cards. Even if you make the payments on time every time, it is going to hurt your credit rating. That is because 30% of your credit score is how much credit you are using – so if it is maxed-out it can hurt you.
The next mistake to avoid is transferring balance from one card to another. A lot of people do this to take advantage of low-introductory rates, however since 15% of your credit rating is new credit applications, if they see this action often, it will bring your score down.
Lastly, a financial mistake that doesn’t hurt your credit rating, but is really bad financially: taking a cash advance. If you take a cash advance from your credit card, you start paying interest immediately and usually at a higher rate than purchases. So this isn’t a good idea.
