• Carl Agard

Credit Card Pitfalls and How to Manage Them

Updated: Sep 25, 2021


Sometimes it can be in the best interest of credit card companies to keep us trapped in debt, but what can we do to keep ahead of the game? Here are some tips to apply:

Keep your balances low – The lower you keep your balances, the higher your score will be. The credit reporting agencies will rate your score higher if you maintain your balance below 25% of your credit limit. Pay down your balance if you are over 50%.

Check your monthly statement closely to make sure your credit card company has not lowered your limit without your knowledge. Many times they will lower your limit first, and send out a letter later.

Use automatic payments – This is a great method to use if you are getting paid a set salary every pay period. By using automatic payments, you will be assured that your payments will be on time every month. You will not have to worry about late fees.

Charge what you can, then pay back in full – When you show a long history of paying more than the minimum monthly bill, you have a great chance of the credit card company increasing your limit. By paying back immediately what you charged, you will not accumulate a balance that you have to pay back in the long term. This will save you hundreds of dollars in not having to pay interest charges.

Negotiate your interest rate down – Once you have established a long term history of on time payments to your credit card company, you can negotiate with them to lower your interest rate; even if you don’t have a perfect score.

Try to use your credit card for emergencies & business expenses – Instead of using credit cards to buy depreciating goods, impulse shopping, or to buy big ticket items, save them for emergencies like an unexpected car repair or a family emergency. If you own a business, use your credit card to buy your products and purchase items towards your business expenses. This helps to establish your business credit and you can write off the expenses on your taxes.

You can beat the credit card companies at their own game if you know how to work the system. You will be building up your credit profile and boosting your score every month.


Carl Agard is the Publisher and Editor in Chief of Boss XL Magazine and the Author of the new E-Book "Financially Surviving COVID19 (Deleting Derogatory Credit)"

You Can Purchase the Book Here!!