Top Reasons Why You Should Not Max Out Your Credit Cards

By: DonaldJennings

Maximizing the amount of your credit card limit may hurt you in the process. But there are wise cardholders who know how to make the most without creating impact on their credit scores. Below are credit card tips you can use for this purpose.

Pay some of your balances

Paying in part some of your previous balances is an excellent way of not having to use up your entire credit limit. You can pay more than what is required of you in a month and continuing payments to lessen what is left eventually creates a good impression from your issuer.

Split up purchases

Use your other cards in purchasing goods or paying for services. Never allow one card to carry the burden of a huge purchase. You can also use cash (and use more of it)) in paying over the counter as this is the type of payment that doesn’t allow you to pay back interest.

Ask for Increased Credit Limit

Consistent payment enables you to be awarded with an increase in your credit card limit. Nevertheless, this increase is not what you may think of as a way to increase your spending. Think of it as a buffer that lies between the existing balance you have and your maximum credit limit. This increase can only happen after six months of using your card, which by the way, a ploy by lenders of looking at how you fare on the payments department.

Transferring of Balance

A fee of 3% is charged by credit companies if you wish to transfer your existing balance to another credit card. Take note that each credit card company have their own percentage fees when it comes to this. This move allows you to free up your other cards to make room for other purchases. This can be done if your other card has a limit larger than that of the one you’d like to have some space.

Consolidate your Card Debts

You may want to apply for a personal loan to merge your card debts. Personal loans have low interest rates and can provide space for your credit cards in times of emergencies.

Curb Spending Habits

Use your card only for emergencies once you see it as almost maxed out. Try to save money for to purchase another set of goods or save more on the side to get that hotel room with a view. If you can pay off some of your purchases, you are still up for some rewards. Also, never think of taking advantage of a sale as they are offered almost every month or season.

Reaching the top of your limit doesn’t do you any good and many cardholders are not aware of this. This may be a case of not knowing how spending can be minimized or simply a case of not having read or told about consequences that follow credit card usage mishaps.

Therefore, read first and get to know how to spend using a credit card or better yet, use these credit card tips to make you understand how painful it is to pay for more and get caught up in a bad credit form.

For more credit card tips, visit Our friends from also have useful tips that may come handy.
Do you set spending limits and just know when to stop swiping the credit card? Let us tell you why maxing a credit card out is not financially healthy. Visit