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Credit card practices to avoid

South Carolina residents likely know that credit cards are handy, especially for emergencies, but usage may become excessive and be difficult to pay off. Learning some of the pitfalls of using credit cards might help avoid problems in the future.

Credit card payments contribute to credit scores and make up 35 percent of the evaluation. Paying bills late lowers an individual's credit score in addition to late fees. Applying for multiple credit cards at the same time may affect an individual's credit score, particularly if the score is on the low side, while small adjustments may have little effect on an individual who has high scores. Multiple inquiries for a vehicle or home are looked at as one event if done within a short period.

Cash advances may increase the amount that is owed on a credit card. While most banks charge a 5 percent fee for a cash advance transaction, another average fee of 23.53 percent may be tacked on to that fee, and interest begins accumulating as soon as the transaction is made. Paying interest at this rate may make credit card debt go up quickly, and it is best to avoid this practice unless absolutely necessary. Another factor that affects an individual's credit score is the amount owed on a card. An individual who owes more than 30 percent of the limit on a credit card may be damaging his or her credit score, and it might be a good idea to keep debt under that limit.

Debt that becomes overwhelming often prevents consumers from being able to get out from under. An attorney may be able to assist those who are in this position by exploring bankruptcy and other forms of debt relief that may be available or appropriate.

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The Huggins Law Firm, PA

Columbia Office
1812 Lincoln Street
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Columbia, SC 29201

Phone: 803-764-1558
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925-D Wappoo Road
Charleston, SC 29407

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