A Few Summer Credit Card Blunders And How To Avoid Them
Summer is usually the time for people to sit back and relax. All through the year, hardworking round the clock means some well needed rest is deserved. But beware to not let the leisure and complacency extend to your pockets. Summer time is the time to guard your money and finances rather well because mistake outlets are open everywhere.
So which blunders should you save yourself from this term? Here are three credit card blunders that you are likely to make this summer time.
1. Getting Your Credit Card Maxed Out For Vacation
Summertime is usually the time for some holidaying fun. When you friend and colleagues around you are making a plan getaway vacation, it is natural for you to feel excited. Yet maxing out your credit card to pay for the trip is one decision that will have dire consequences on your future finances.
Your credit score is determined using your credit utilization ratio. So the more you credit you use the greater will be your credit utilization ratio. A credit ratio is the percentage of amount you are using to your original amount available. The higher your credit ratio the more chances the federal bureau will start to cut your credit score.
2. Financing Home Renovations By Opening Lots Of Credit Cards
The heat of the sun and the warmth of summer is one of the best times to work on your home’s improvements and renovations. At that point though it is important you stay smart and avoid opening a large number of retail credit cards to finance this job.
New inquires of credits lowers your credit card score, applying for a large number of credit cards at the same time is likely to result in an even greater hit for your credit score. We advise you to open new cards rarely irrespective of the cheapness of the home renovation deal that you are getting.
3. Letting The Fun Get The Better Of Your Responsibility
When you are on vacations and having fun troubles and trials of life can seem like a distant memory. Summer time fun brings lots of happiness and joy. Whether you are enjoying with your mates or your family summer vacations are the best time to shed those worries away. Yet one worry that you shouldn’t forget is paying your credit card bill.
Forgetting to pay your credit card bill can have dire consequences for the state of your finances which means you might not end up enjoying summer as much as you were. Did you know that by not paying an account on time, this can affect your Veda credit score? Keep this mind and you’ll know how important it is for you to pay the bills on time. Make sure you have reminder somewhere to remind you of this task in your mobile or diary.
Summertime is fun time for most and yet if you aren’t careful you can end up causing damage to not only your vacation with your family but also your financial position.