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Let’s be real—life’s expensive, and your credit card knows it. It’s basically your financial BFF… until it turns into that toxic friend who convinces you to buy a $300 air fryer at 2 a.m. Swiping is easy, but forgetting to pay on time? That’s where the drama starts. Late payments, maxing out limits, or treating your card like Monopoly money can trash your credit score faster than you can say “minimum payment.” So unless you want your credit score crying in a corner, treat that plastic with some respect. Use it smart, pay on time, and stay fabulous
What Are Credit Scores?
Think of your credit score (aka CIBIL score) as your financial report card. It’s a number that shows how trustworthy you are with money—like how well you pay bills, use credit, and manage loans. Calculated by credit bureaus, it’s based on your payment history, credit usage, and more. A high score? You’re golden—hello, low interest rates and faster loan approvals! A low one? Not so much. So yes, your credit score does open (or close) financial doors.
Utilizing credit/credit cards only benefits you when you have discipline and stick to the plan. The purpose is to reap the benefits, but if you’re maxing out credit cards from paying bills, etc. and not paying them off, you’ll only dig yourself a hole. Know what you’re doing.
— B. Sade (@brittanisade) October 4, 2022
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Here Are The Top 5 Ways To Avoid Credit Mistakes
- Paying Only the Minimum Due
Paying just the minimum due on your credit card keeps your account active—but it doesn’t save you from interest charges. Over time, you end up paying much more than you spent, and your credit score takes a hit due to the high outstanding balance. - No Credit Mix
Lenders like to see that you can handle different types of credit responsibly. If you only use one type (say, just credit cards), it shows limited credit behavior. A mix of credit card, personal loan, and long-term credit like a home loan reflects financial maturity and boosts your score. - Maxing Out Your Credit Card
Using your full credit limit often? That’s a red flag. High credit utilization (above 30%) suggests you’re financially stretched, even if you pay on time. This can lower your score, as lenders prefer borrowers who manage their credit usage wisely. - Delaying Bill Payments
Your credit card offers a grace period—usually up to 45 days—but missing the actual due date can cost you. Late payments are reported to credit bureaus and stay on your report, pulling your score down. Always pay at least by the due date to stay in the clear. - Being a Guarantor for Defaulters
When you co-sign or guarantee someone else’s loan, you become responsible if they default. Even if you’re not the borrower, their missed payments can damage your credit score. Only be a guarantor if you’re absolutely confident in their repayment ability.
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