The 7 Deadly Credit Card Sins from msn.com
1. Gluttony: Bumping up against your credit limit Just because your issuer awarded you a $6,000 credit limit doesn't mean you should max the card out. For starters, those who aren't able to pay off their balances in full increase the likelihood of winding up in debt, since they'll be subject to the interest on their purchases. Secondly, bumping up against your credit limit is likely to have a negative overall impact on your credit score.
2. Pride: Not checking your credit report You might assume your credit score is in fine standing based upon a presumably stellar payment history, but the truth of the matter is that credit reports can easily contain errors. And the more egregious ones, like inaccurate delinquencies or improper credit limit information, can cost you more than a few points on your accompanying credit score.
3. Lust: Applying for too much credit Lucrative sign-up bonuses can certainly be attractive, but that doesn't mean you should apply for every credit card that's touting one. Too many credit card inquiries -- generated by lenders that are looking to see if you deserve a new line of credit -- in a short time frame can also negatively affect your credit score.
4. Greed: Taking out a cash advance It may seem like a great idea to use your credit card to get a cash advance at a casino so you have some cash to gamble with, but in addition to the lousy odds you'll have trying to make the money grow, the paper comes with a price.
5. Envy: Applying for a card that's out of your league Your globe-trotting friend may continually flash a credit card that grants access to swanky airport lounges, earns free airfare and avoids foreign transaction fees, but don't let jealousy lead you to sign up for one of your own. Typically, cards of that caliber contain high annual fees that are worth paying only if you travel enough to justify the rewards.
6. Wrath: Closing all your credit card accounts Those who have gotten burned by their plastic may be inclined to cut up all the credit cards in their wallet and close all the accompanying accounts, but it's best to curb your anger. Closing accounts can negatively influence your credit-to-debt ratio, especially if the one card you're leaving open -- or transferring a balance to -- is bumping up against its credit limit. It's better to keep the account open but not use it, since that will keep your credit-to-debt ratio positively intact and not jeopardize the average age of your credit report.
7. Sloth: Not checking your monthly credit card statements It can be easy to set up automatic bill pay on your account and then forget all about your credit card, especially in instances where you use it infrequently. However, it's a bad idea to skip checking your monthly credit card statements.