Credit card mistakes to avoid

Some Florida consumers may be making mistakes with credit cards that could lead to a reduced credit rating or to struggling with debt. For example, late payments can hurt a person’s credit rating and can also cause fees and interest to mount. After six months without payments, a debt could be charged off by the credit card company, and this may remain on a person’s record for seven years.

A person who does not use a card regularly should not close the card unless it has an onerous annual fee. This is another action that could hurt a credit rating. It is possible to ask for a change in terms on the card such as a lower interest rate.

While it can be tempting to use credit cards to get rewards, it is important to avoid purchasing things that would not otherwise be bought and carrying a large balance. Overspending in general should also be avoided. Paying the minimum balance means a person could be paying high interest rates on a purchase for years. Frequently applying for cards that a person cannot qualify for can also hurt credit. Finally, people should monitor their credit score.

Failing to follow these guidelines may lead to a person struggling with unmanageable debt. People also fall behind on credit card payments when they end up using credit cards for necessities due to job loss or other financial issues beyond their control. Filing for bankruptcy may be one way to wipe the slate clean and get a fresh start financially. People in this type of situation might want to learn more about their options by speaking with an experienced lawyer.