scorerevive

[ad_1] At a glance: If you’re looking for a credit card that offers a wide range of rewards and benefits, the U.S. Bank FlexPerks Gold American Express Card is an excellent choice to consider. With this card, you can earn rewards on purchases that can be redeemed for travel, merchandise and cash back.  In this post: The benefits What to consider before signing Alternative cards Our takeaways The U.S. Bank FlexPerks Gold American Express Card is a rewards credit card that lets you accumulate points and redeem them for a variety of perks. Options for redemption include travel, such as hotel stays and airfare, products and cash back. You’ll need good to excellent credit to get approved for this card, which provides the highest level of points for hotel and car rental purchases when booked through the FlexPerks Rewards Center. The Benefits of the U.S. Bank FlexPerks Gold American Express Card This credit card comes with a number of benefits. First, for a rewards card with decent benefits, it has a fairly low annual fee of $85. Depending on your creditworthiness, the variable APR is 18.99% to 28.99%, and you’ll never pay foreign transaction fees—something that’s important for international travelers. You earn points when spending with the U.S. Bank FlexPerks Gold American Express in the following ways: In addition to points, you get a lot of perks you might expect from a travel rewards credit card. Those include: What to Consider Before Signing Up for the U.S. Bank FlexPerks Gold American Express Card Before applying for a credit card, you should always consider whether you have the credit score to get approved. Review the fine print, including annual fees, interest rates and other fees, to ensure you can afford to hold the card. Finally, consider whether the perks and rewards structure will work well for your lifestyle. For example, if you aren’t someone who stays in hotels or travels a lot, this card may not be the right fit for you. You might get a better deal by applying for a cashback credit card. However, if you do travel a lot and don’t have a preferred hotel chain or airline, the FlexPerks card can provide the flexible rewards system that’s right for you. Alternatives to the U.S. Bank FlexPerks Gold American Express Card Not sure if this is the right card for you? Check out some other options below. U.S. Bank Triple Cash Rewards Visa Business Card APR/Rates: Regular APR: 18.27%-27.49% Intro APR: 0% introductory APR on purchases and balance transfers for the first 15 billing cycles Fees Annual fees: none Balance transfer and convenience check cash advance fees: 3% or $5 Other cash advance fees: 5% or $10 Late and returned payment and over limit fees: up to $40 Rewards: 1% to 3% cash back Bonus Rewards: N/A Best for: Small Business U.S. Bank Altitude Connect Visa Signature Card  APR/Rates: Regular APR: 20.49%-28.49% Intro APR: N/A Fees Annual fees: $95 after the first year Balance transfer and convenience check cash advance fees: 3% or $5 Other cash advance fees: 5% or $10 Late and returned payment fees: up to $41 Rewards: 2x to 5x points Bonus Rewards: 50,000 bonus points after spending $2,000 in the first 120 days Best for: Travel Rewards U.S. Bank Business Leverage Visa Signature Card APR/Rates Regular APR: 20.49%-25.49% Intro APR: N/A Fees Annual fees: $95 after the first year Balance transfer fees: 3%-5% or $5 Convenience check cash advance fees: 5% or $5 Other cash advance fees: 5% or $10 Late and returned payment fees: $39 Rewards: 1% to 2% cash back Bonus Rewards: $750 bonus rewards when you spend $7,500 in the first 120 days Best for: Small Business U.S. Bank Cash+ Visa Signature Card APR/Rates Regular APR: 18.99%-28.99% Intro APR: 0% introductory APR on purchases and balance transfers for first 15 billing cycles Fees Annual fees: none Balance transfer and check cash advance fees: 3% or $5  Other cash advance fees: 5% or $10  Late and returned payment fees: up to $41 Rewards: 2% to 5% cash back Bonus Rewards: $200 rewards bonus when you spend $1,000 in the first 120 days Best for:  Cash Back U.S. Bank Altitude Go Card APR/Rates Regular APR: 19.49%-28.49% Intro APR: 0% introductory APR on purchases and balances transfers for 12 billing cycles Fees Annual fees: none Balance transfer and check cash advance fees: 3% or $5  Other cash advance fees: 5% or $10 Late and returned payment fees: up to $41 Rewards: 1x to 4x points redeemable as cash back Bonus Rewards: 20,000 bonus points after spending $1,000 the first 90 days Best for: Cash Back U.S. Bank Business Platinum Card APR/Rates Regular APR: 16.49%-25.49% Intro APR: 0% introductory APR on purchases and balance transfers for the first 18 billing cycles Fees Annual fees: none Balance transfer and check cash advance fees: 3% or $5 Other cash advance fees: 5% or $10 Foreign transaction fees: 3% Late payment fees: $19-$39 Returned payment fees: $35 Over limit fee: $39 Rewards: N/A Bonus Rewards: N/A Best for: Small Business U.S. Bank Visa Platinum Card APR/Rates Regular APR: 18.99%-28.99% Intro APR: 0% introductory APR on purchases and balance transfers for the first 18 billing cycles Fees Annual fees: None Balance transfer and check cash advance fees: 3% or $5 Other cash advance fees: 5% or $10 Foreign transaction fees: 3% Late and returned payment fees: up to $41 Rewards: N/A Bonus Rewards: N/A Best for: Balance Transfer U.S. Bank Altitude Reserve Visa Infinite Credit Card APR/Rates Regular APR: 21.49%-28.49% Intro APR: N/A Fees Annual fee: $400 Balance transfer and check cash advance fees: 3% or $5 Other cash advance fees: 5% or $10 Late and returned payment fees: up to $41 Rewards: 1x to 5x points Bonus Rewards: 50,000 bonus points after spending $4,500 in the first 90 days Best for: Travel Rewards Our Takeaways The U.S. Bank FlexPerks Gold American Express Card may be a good option for individuals looking for a flexible travel rewards credit card. Whenever you’re applying for any card, you should consider details such as rewards, fees and other benefits of the card. Choose a card with benefits that work for you and fees that fit within your budget to

[ad_1] Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Quick answer box Term life insurance covers you for a specified amount of time, whereas a whole life insurance plan covers you permanently. Whole life insurance provides more coverage and a cash value that you can borrow against, but it’s significantly more expensive. For many, talking about life insurance with loved ones can be scary as it makes us confront difficult topics around death and finances. The reality is that life expectancy in recent years has declined due to the COVID-19 pandemic and other factors. Additionally, there are between 180,000 to 450,000 sudden unexpected deaths (SUDs) each year. We don’t share this information to scare you, but rather explain why it’s important to think about how you plan to protect your loved ones in the event of an unexpected death. This can often be a difficult topic to discuss, but it’s why life insurance is such an important resource. Like other forms of insurance, life insurance provides a sum of money should an individual pass away. With life insurance, you name beneficiaries like your spouse, children, or others, so they’re financially secure if something were to happen to you. Here, you’ll learn the differences between term life vs. whole life insurance, the benefits and drawbacks of each and how to choose the one that’s right for you and your family. Key takeaways: Term life insurance is similar to regular insurance because you’re covered for as long as you have the policy Whole life insurance is more expensive than term life, but it covers you permanently The average price of whole life insurance can be five to 10 times more expensive or more, but it also provides more coverage and benefits What is the difference between term vs. whole life insurance? The primary difference between term and whole life insurance is that term life insurance lasts for a certain number of years and whole life insurance lasts as long as you’re alive. While paying your premiums for whole life insurance, you also have an account with a tax-free cash value, which you can borrow against.  What is term life insurance? Term life insurance covers you for a specified amount of time, which is typically between five and 30 years. If an individual passes away during the term, the beneficiaries of the policy receive a payout. Between term and whole life insurance, term life insurance is often the more affordable option.  When signing up for a term life insurance policy, you can choose one that’s unique to your situation. By doing this, you can sometimes find a lower price to reduce your premiums. The pros and cons of term life insurance Term life insurance’s biggest benefit over whole life insurance is the cost. It’s more affordable, but there are some downsides to consider as well. Pros: Affordable Policies are easier to understand Better for young, healthy people Cons: Beneficiaries don’t receive money if you outlive the term No tax benefits No cash value Term life insurance is similar to other insurance policies in the sense that if nothing happens, you don’t receive a payout or other benefits. What is whole life insurance? Whole life insurance covers you for as long as you’re alive, but it’s often more expensive than term life insurance. Those who choose this option need to budget for insurance a bit more to get the additional benefits. Also known as “permanent life insurance,” this insurance policy never expires as long as you’re paying your premiums on time. The pros and cons of whole life insurance The biggest benefit of whole life insurance is that your loved ones will receive a payout regardless of when you pass away. It also has some cash and tax benefits, but there are some drawbacks to take into consideration, too. Pros: Lasts as long as you’re alive Can borrow or withdraw money from the policy Loans are usually tax-free Premium price doesn’t fluctuate Cons: More expensive than term life insurance Policy may be canceled if you miss a payment Unpaid loans reduce the benefits When you make payments on whole life insurance, the payments are split between your premium and the cash value. According to Fidelity Life, the amount going into the cash value is larger at the start of the policy and gradually lowers over time. This cash value can also accrue interest, which makes it similar to a savings account. What’s the cost difference between term and whole life insurance? As mentioned, whole life insurance can be much more expensive than term life insurance. To simplify, we’ll use a $500,000 policy to look at the average cost difference between the two. This can help you whether you’re budgeting for retirement or looking to get a policy while you’re younger.  The following monthly rate averages come from research conducted by Quotacy for term life insurance and Policy Genius for whole life insurance: .container{ max-width: 1200px; width: 100%; margin: auto; } .cradit-crawalable-table { border-collapse: separate; width: fit-content; border-radius: 10px; margin: 50px 0; border: solid 1px #f2f2f2; border-spacing: 0; overflow: auto; height: max-height; display: block; } .cradit-crawalable-table::-webkit-scrollbar { width: 5px; border-radius: 20px; } .cradit-crawalable-table::-webkit-scrollbar-track { -webkit-box-shadow: inset 0 0 6px rgba(0,0,0,0.3); border-radius: 20px; } .cradit-crawalable-table::-webkit-scrollbar-thumb { background-color: #44b853; outline: 1px solid slategrey; border-radius: 20px; } .cradit-crawalable-table thead { color: #303030; } .cradit-crawalable-table thead tr { background-color: #f2f2f2; border-radius: 10px; } .cradit-crawalable-table thead tr th { text-align: left; padding: 15px; border: 0; } .cradit-crawalable-table thead tr th:first-child { border-radius: 10px 0 0 0; } .cradit-crawalable-table thead tr th:last-child { border-radius: 0 10px 0 0; } .cradit-crawalable-table tr td { padding: 15px; border-left: 0; border-right: 0; border-bottom: solid 1px #f2f2f2; } .cradit-crawalable-table tr p { padding: 0; margin: 0; } .cradit-crawalable-table tr a { color: #44b853; padding: 0; text-decoration: none; } .question-box { padding: 50px;

[ad_1] Your credit score communicates with lenders your level of credit trustworthiness. As a result, those with higher credit scores qualify for higher credit limits and better interest rates. Your credit score will play a major role if you plan to purchase a house or apply for a loan in the future. Understanding credit scores and what they mean can improve your financial literacy. We gathered the following credit score statistics to help you get a better sense of where your credit score stands compared to other Americans. Key findings: The national average FICO® Score is 716 as of April 2022 (FICO) About 10% of the U.S. population doesn’t have a credit record and are “credit invisible.” (Consumer Financial Protection Bureau) Ages 76 and up have the highest average credit score at 760. (American Express) Women’s and men’s average FICO Scores are virtually the same. (Experian) Average U.S. credit score The national average FICO Score is 716 as of April 2022. This is the same as when FICO last reported on it a year ago. Average credit score by state While your location doesn’t affect your credit score, some states have a higher average credit score than others as seen in the statistics listed below. While 31 states (and the District of Columbia) have average FICO scores that are higher than the national average of 716, the upper Midwest and New England continue to have the best average FICO Scores. (FICO) Minnesota, Vermont, New Hampshire and Wisconsin all have scores that are 23 points higher than the national average, with scores of 742, 739 and 737, respectively. (FICO) Mississippi, Louisiana, Alabama and Arkansas have the lowest credit scores at 662, 668, 672 and 673, respectively. (WalletHub) Average credit score by age Since credit history length is a factor that influences your credit score, it makes sense that the average credit score increases with age as seen below. Approximately 58% of consumers with the highest credit score are between the ages of 56 and 74. (Money Geek) The average score for adults aged 18 to 29 increased by 24 points between April 2017 and April 2022; 19 points for those aged 30 to 39; 19 points for those aged 40 to 49; 13 points for individuals in their 50s; and 10 points for those aged 60 and older. (Nerd Wallet) As of 2021, ages 18-24 have the lowest average credit score at 679. (American Express) Ages 76 and up have the highest average credit score at 760. (American Express) Average credit score by race Average credit scores can differ across demographics like race. However, keep in mind that race doesn’t directly influence your credit score. At 745, the Asian population has the highest average FICO score. (Shift Processing) The average credit score among White individuals is 734. (Shift Processing) The average credit score among Hispanic individuals is 701.  (Shift Processing) The Black population has the lowest average score of 677. (Shift Processing) Average credit score by gender Although women couldn’t legally apply for credit until 1974, women’s and men’s average FICO Scores are still very close in range at 705 for men and 704 for women as of 2019, according to Experian. Average credit score by income A common credit score myth is that your income contributes to your credit score. Although this is untrue, the statistics below show a correlation between income and credit score. Approximately 25% of low-income consumers don’t have enough knowledge to raise their credit scores. (Consumer Federation of America) The median credit score of 658 for lower income individuals suggests that many borrowers are unlikely to have access to affordable credit as those with scores above 720. (Federal Reserve Bank of New York) Those considered high income have the highest average credit score at 774. (American Express) Average FICO Score in the U.S. FICO is an analytics firm that developed the credit scoring models used today. The national average FICO Score is 716 as of April 2022, the same as when FICO last reported on it a year ago. Here are some FICO statistics. Average FICO Score by generation The Silent Generation (ages 77 and up) has the highest average credit score at 760. (Experian) The average credit score of baby boomers (ages 58-76) is 742 in 2022, up two points from 2021. (Experian) Generation X (ages 42-57) has an average credit score of 706. (Experian) The average credit score of Millennials (ages 26-41) is 687. (Experian) Generation Z (ages 18-25) has an average credit score of 679 in 2022, the same as 2021.  (Experian) Generation Average credit score (2022) Silent Generation 760 Baby Boomers 742 Generation X 706 Millenials 687 Generation Z 679 Average VantageScore in the U.S. VantageScore is the second most popular credit scoring model in the U.S. As of September 2022, the average VantageScore was 697. Credit card utilization statistics Credit utilization refers to the amount of your available credit you’re currently using. Your credit utilization ratio is calculated by adding up your balances and then dividing by the total of your credit limits. Keeping your credit utilization ratio low can help raise your score. Individuals with credit scores 800 to 850 have an average credit utilization ratio of 5.7%. (Experian) Consumers with credit scores considered “very good” (740-799) have an average utilization ratio of 12.4%. (Experian) Those with credit scores in the “good” range (670-739) have an average credit utilization ratio of 32.6 %. (Experian) 47.6% of the population opened at least one new credit account in the last year. (FICO) Approximately 26 million U.S. adults, or 10%, don’t have a credit record and are “credit invisible.” (Consumer Financial Protection Bureau) 19 million Americans have a credit history but lack a credit score because their report is insufficient or out of date. (Consumer Financial Protection Bureau) The 15% growth in credit card balances from 2021 to 2022 is the highest in more than 20 years. (Federal Reserve Bank of New York) Currently, 83% of American people own at least one

[ad_1] One of the key factors that determine your credit score is your credit utilization ratio. In fact, this ratio accounts for as much as 30% of your credit score. With this much influence on your credit score, it’s important to understand what credit utilization is, how to calculate it, and how it impacts your finances. This article delves deeper into the answers to these questions. It also provides valuable tips for improving your credit utilization ratio. In This Piece What Is Credit Utilization? Why Is Credit Utilization So Important? How Does Credit Utilization Affect Your Credit? How to Improve Your Credit Utilization Does Opening Credit Cards Improve Your Credit Utilization? Does Closing Credit Cards Improve Your Credit Utilization? What Is Credit Utilization? In the most basic terms, your credit utilization is the amount of debt you owe in comparison to your overall credit limit. Only revolving credit is used when determining credit utilization. Things like mortgage loans, car loans, and student loans aren’t included. What Is Revolving Credit? Revolving credit is any type of credit account that continuously renews as you pay off the debt connected to that account. Some prime examples of revolving credit include credit card accounts and home equity lines of credit. How to Calculate Credit Utilization You can easily calculate your credit utilization ratio using a credit utilization calculator or the following formula. Start by adding up all your revolving credit account balances. Next, you need to add together the credit limit amounts for each of these accounts. With this information, you can calculate your credit utilization ratio by dividing your total account balances by the total credit limits and multiplying this total by 100. Credit utilization ratio formula: (Total amount of revolving credit account balances / Total credit account limits)  x 100 How Balance Reporting Affects Credit Utilization While credit card companies are under no obligation to report your credit information to the credit report agencies, almost all of them do. In fact, most credit cards submit your credit information every billing cycle. This means your credit card company will likely update your credit card balance every 25–30 days or so. This frequent reporting affects your credit score because the amount of credit you have available versus your credit balances impacts your credit utilization ratio. Depending on your spending and repayment habits, credit card balance reporting could cause your credit score to change from month to month. Understanding Per-Card vs. Overall Utilization It’s important to understand the difference between overall credit and per-card utilization. Your overall credit card utilization combines all your revolving credit accounts into one ratio. Your per-card utilization only takes into account one card at a time. For per-card utilization, you can use a credit card utilization calculator or the formula listed above, but instead of adding all your account balances together, you calculate each card separately. Most experts recommend keeping your overall credit utilization score under 30%. However, some creditors look at revolving accounts separately. It’s a good idea to spread your revolving credit across multiple accounts rather than just one or two credit accounts. This keeps the credit utilization from getting too high on any one card. There are also two other utilization numbers that could be helpful to know: Line-item utilization measures your individual credit card balances against your individual limits. For example, suppose you have three credit cards, each with a $10,000 limit. Based on your current balances, your line-item utilizations break down like this: Card A: Balance of $4,500 / Credit limit of $10,000 = 0.45 × 100 = 45% utilization Card B: Balance of $2,000 / Credit limit of $10,000 = 0.20 × 100 = 20% utilization Card C: Balance of $3,300 / Credit limit of $10,000 = 0.33 × 100 = 33% utilization Aggregate utilization is the average of your credit card utilizations. Calculate yours by combining your current balances and dividing them by your total credit limit. In the example above, your total balance is $9,800 and your total limit is $30,000; therefore, your aggregate credit utilization is $9,800 / $30,000 = 0.32 × 100 = 32.6% Why Is Credit Utilization So Important? Every factor of credit scoring is crucial, but credit utilization is responsible for 30% of your overall score, second only to your payment history’s weight of 35%. Credit utilization measures your revolving balances against your total credit limit. Lenders and credit card issuers rely on credit utilization to predict risk and future behavior. In general, the higher your utilization ratio, the greater your risk of defaulting on your balances. Risky behavior isn’t rewarded in the world of credit scoring, and you may see a decrease in your scores as your utilization ratio goes up. How Does Credit Utilization Affect Your Credit? Your credit utilization ratio directly impacts your credit score. In fact, five primary factors influence your score for FICO and VantageScore, the two most common credit scoring companies used. The Five Credit Factors Payment history: Your payment history, including both on-time and late payments.FICO: 35% of your credit scoreVantageScore: 41% of your credit score Credit utilization: The amount of debt you have compared the amount of your current available credit balance accounts.FICO: 30% of your credit scoreVantageScore: 34% of your credit score. This includes credit utilization, outstanding balances, and available credit. Age of credit history: The length of time you’ve held each credit account.FICO: 15% of your credit scoreVantageScore: N/A Account mix: The different types of accounts you have. You should have a variety of accounts, including installment loans and revolving credit accounts.FICO: 10% of your credit scoreVantageScore: 20% of your credit score New credit inquiries that impact your credit score. Work at building your credit slowly to reduce the risk of too many hard inquiries to your account over a short period of time.FICO: 10% of your credit scoreVantageScore: 11% of your credit score What Is a Good Credit Utilization Ratio? Experts agree that you should try to keep your credit utilization ratio under 30% if possible. When it

[ad_1] Guest Post by FitMoney As a parent of a teenager or young adult, you want to ensure that your child is financially secure and understands the importance of taxes. Filing taxes can often be confusing and intimidating, but it’s an important part of life when you start earning income. Once you know a few key concepts, filing your taxes doesn’t have to be so intimidating. Teens and young adults need access to resources that explain the tax filing process in easy-to-understand language and walk them through their specific filing situation so they know exactly what needs to be done come tax time. Today, we’ll cover taxes from a young adult perspective and discuss how learning about this important financial component now can help prepare for future success. Explain the basics of filing taxes and why it’s important for young adults Filing taxes can seem daunting for young adults, but it’s an essential part of financial responsibility that shouldn’t be overlooked. Simply put, it’s a way for the government to ensure that they’re collecting the appropriate amount of money from individuals and businesses alike. When you file your taxes, you’re essentially reporting your income for the year and any applicable deductions you may have. It’s important to file because if you don’t, you could end up facing penalties. Additionally, filing can help you receive a refund if you overpaid taxes throughout the year. Even if you’re just beginning work, there could be money for you to claim. Don’t let the tax season stress you out–it’s an opportunity to reflect on your own financial literacy throughout a calendar year. Educate yourself on why and how we pay taxes Sometimes the toughest part of filing taxes can be knowing where to start. Young adults need to learn if they should file, when to file, how to file, and what all those numbers across a paycheck mean. Did you know that more income doesn’t necessarily mean a higher tax rate? It just means that only income over a certain amount will be taxed higher. What forms should you keep an eye out for in January? What can you do throughout the year to make paying your taxes easier? Sometimes, we’re left with more questions than answers, and these are just a few of the questions that are critical for building financial stability and health as your resume grows. Knowing when and how to file Knowing when and how to pay and file taxes is crucial to staying organized and on top of your responsibilities. It’s important to understand how you pay taxes throughout the year and when you need to file. This can depend on many factors including your job, income, or where you live. Secondly, figuring out how to file can seem overwhelming, but there are many resources available to help you navigate the process. Government websites or tax professionals can provide guidance and assist you in filling out necessary paperwork. Remember, filing taxes might seem overwhelming, but with a little research and support, you can successfully manage this responsibility – just don’t miss that Tax Day deadline! Understanding your paycheck A paycheck is an important part of understanding your taxes. Your paycheck outlines your gross pay, taxes deducted from your income, and the final amount of take home pay that you actually receive in cash or check form. The gross pay includes regular wages, any overtime wages. Also included on your paycheck are mandatory and optional deductions which are taken directly from your paycheck before the final amount of take home pay is calculated. The look of your paycheck can often explain what forms to look out for at the start of tax season. Whether you’re receiving pay stubs from an employer or submitting invoices as a freelancer, it’s important to hold on to this important paperwork to keep track of what you owe and what you’ve paid. Once all deductions are included, the net amount of your paycheck is what you will receive as take home pay. Tax season can be stressful, but it doesn’t have to be! All it takes is some time to know what to do and why you’re doing it. In just an hour, anyone can build confidence to not feel intimidated every time tax season comes around. It’s something we’ll do for the rest of our lives – so why not take the stress out of it? Learn More about FitMoney The post What Young Adults Should Know When Filing Taxes appeared first on Credit.com. [ad_2]

[ad_1] Rent payments are not typically reported to the credit bureaus. If you make a rent payment on time every month, you’re fulfilling your commitment to your landlord—but those payments are not contributing to your credit scores. However, if you’re new to credit or trying to recover from past financial problems, you probably want to get … How to Add Rent Payment History to Your Credit Report Read More » If you’re new to credit or trying to recover from past financial problems, you probably want to get credit for every on-time payment you make. That’s why it’s a good idea to consider reporting rent to the credit bureaus. Learn how. The post How to Add Rent Payment History to Your Credit Report appeared first on ScoreSense. [ad_2]

[ad_1] If you know how to use a credit card responsibly, you can boost your financial life. Credit cards help you shop more securely online and book rental cars, and they can create more flexible cash flow opportunities. When used responsibly, credit cards also help you build credit. Flip the coin, however, and you get irresponsible credit card use. That can hurt your cash flow, leave you in debt and lower your credit score.  Many people think responsible credit card use simply means paying their bills on time. But that’s just the minimum. In reality, there are a few bad habits people can fall into that hurt their credit and make for poor credit card use. Learn about some bad credit card habits you can’t afford not to change below. In This Piece Constantly Making Late Payments  Only Making the Minimum Payment Ignoring Your Statements Applying for the Wrong Card Maxing Out Your Credit Cards Applying for Too Many Credit Cards at Once Not Using Your Credit Cards 1. Constantly Making Late Payments  Timely payments are the biggest factor in credit score calculations, so you should strive to pay all your debts on time. Missing credit card payments regularly is a good way to tank your score and make your future debt more expensive. Those late payments can also stay on your credit report for up to seven years. On top of this, many credit card companies charge late fees. They can be $40 or more, so they add up to a lot quickly. You might also face penalty interest rates that make your debt more expensive if you’re late with your payments. 2. Only Making the Minimum Payment You can keep late payments off your credit history by making the minimum payment amount each statement cycle. But that makes your debt more expensive overall and means you’re paying down your balance for much longer. For example, say you have a card with a $1,000 balance and 24% interest. Your minimum payment is $25. Paying only $25 a month, it would take you 82 months to pay off the balance and cost you a total of $2,031 with interest. If you paid $100 a month instead, you’d pay off the balance in 12 months for a total of $1,127 with interest.  As you can see, paying more than the minimum makes a huge difference. Whenever possible, add what you can to any payments. 3. Ignoring Your Statements If you’re struggling to pay your bills or just busy, you may be tempted to toss statements to the side or even hide them in a drawer. However, you should always open and review your statements as soon as possible after you get them.  Reviewing your statements gives you a chance to ensure there aren’t mistakes or charges you didn’t make. Reporting fraudulent charges sooner rather than later can help you reduce any negative outcomes associated with identity theft. You should also create a monthly budget that helps you make your credit card payments without too much stress. That way, you aren’t tempted to ignore those statements. 4. Applying for the Wrong Card You should always research a credit card before you apply for it—first, because you should understand the credit requirements and whether you’re likely to be approved. Applying for a card that you can’t get simply results in an unnecessary hard inquiry on your account. Second, you should research cards to find ones with rewards, benefits and perks that work for you. For example, some luxury rewards cards have annual fees of $400 to $700. Those cards are only a good idea for individuals who can max out rewards to make up for the fees. If that’s not you, you may want to apply for more cost-effective cards. 5. Maxing Out Your Credit Cards Credit utilization is another big factor in your credit score. This refers to how much of your available credit you’re using.  For example, if you have a credit limit of $1,000 and a balance of $600, your credit utilization is 60%. That’s really high and can have a negative impact on your score. Keep your credit utilization rate at 30% or lower for the best result.  6. Applying for Too Many Credit Cards at Once Each time you apply for a credit card, your credit is pulled by the lender. That leads to a hard inquiry, which can reduce your credit score. Other lenders may also see numerous hard inquiries on your credit as an indication that you’re struggling with finances or desperate, which is never good when you want to apply for credit. Opening a bunch of new credit cards at the same time can also impact the average age of your credit accounts. Credit age is a factor in your credit score. 7. Not Using Your Credit Cards If you don’t use your credit cards, your card issuer may decide to close your account. This can impact the age of your open credit accounts, which adversely affects your credit. Instead, ensure you have credit cards that work for you so you can integrate them into your day-to-day financial life. Use them for items you would normally purchase and pay off each statement to avoid interest. How to Use a Credit Card Responsibly Now that you know what not to do with your credit card, here are a few tips for how to responsibly use a credit card: Only use your card for necessary items you’d already be purchasing. Avoid using cards for frivolous purchases, as that can lead to running up your balances. Always make payments on time. Consider setting up automated payment reminders or automated payments so you never forget. Keep your balances under 30% of your credit limits so you don’t take a hit on credit utilization. This doesn’t mean you can’t use your entire credit limit. However, you should pay it down to under 30% before the statement cycle ends. Manage Your Credit and Credit Cards Keep on top of your