These 7 Credit Card Mistakes Are Holding You Back | Summary and Q&A

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June 27, 2023
by
Brian Jung
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These 7 Credit Card Mistakes Are Holding You Back

TL;DR

Learn about seven common credit card mistakes, including closing credit cards, opening too many at once, and not utilizing credit card benefits.

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Questions & Answers

Q: Should I close a credit card I no longer use?

It is generally best to keep a no annual fee credit card open, as closing it can negatively impact your credit score.

Q: Can I apply for multiple credit cards at once?

While there are exceptions, it is generally not advisable to open too many credit cards at once, as it can make lenders wary and potentially lead to denials.

Q: Is it a good idea to sign up for store-bought credit cards?

Store-bought credit cards often have inferior offers and can limit your options for better cards, so it's best to avoid them.

Q: How often should I apply for credit cards?

Beginners should space out credit card applications every six to twelve months, while more advanced users can apply every two to three months.

Q: Should I carry credit card debt?

It is best to avoid carrying credit card debt, as it can result in accruing interest and negate the benefits of credit cards. However, there are strategic ways to use credit card debt to your advantage.

Q: How can I make the most of my credit card benefits?

Make sure to fully understand and utilize the benefits of your credit cards, such as free hotel stays or zero percent intro APR offers.

Q: Why is it important to have a credit card strategy?

Having a credit card strategy allows you to tailor your credit card usage to your needs and goals, maximizing the benefits and rewards you can receive.

Q: Can I get a business credit card even if I don't have a business?

Yes, you can get a business credit card even if you don't have a business. It is easy to start a business, and business credit cards offer additional benefits.

Summary & Key Takeaways

  • Closing a credit card can negatively impact your credit score, so it's best to keep a no annual fee credit card open.

  • Opening multiple credit cards at once can be overwhelming and may harm your chances of approval. Start slowly and choose cards strategically.

  • Avoid signing up for store-bought credit cards as they often have inferior offers and can limit your options for better cards.

  • Space out credit card applications every six to twelve months to avoid triggering red flags with lenders.

  • Treat credit cards like debit cards to avoid accruing interest and getting into debt.

  • Make sure to fully utilize credit card benefits like annual free hotel stays or zero percent intro APR offers.

  • Understand your credit card strategy and why you got into credit cards in the first place, as they can be tailored to your needs and spending habits.

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