Charges That Lead To Bad Credit

Credit scores are based on more than just whether you pay off your debts on time. Some creditors will lower your score if you charge the wrong things on your credit or debit card.

The creditors’ thinking is that certain kinds of purchases are indicative of irresponsible behavior that makes people more likely not pay your debts. This means that they will lower credit scores or raise the rates of people who have those things on their credit card bills.

Don’t Use Credit Cards To Pay for Gambling

If you like to gamble, don’t use your credit card or debit card at the casino, racetrack, card parlor or other gambling establishment. In particular don’t use the card on internet gambling sites.

Gambling is the kind of irresponsible behavior that some credit card companies will use as an excuse to raise your rates. Instead use cash when you gamble, and leave your card at home or in your wallet.

That’ll also make it easier to limit your gambling and your losses.

If you don’t want to carry cash around use a gift card or preloaded debit card to pay for your gambling.

Be Careful Where You Shop

Some credit card companies and banks will lower credit score if you shop in the wrong places.

There are some creditors who will lower your score if you do a lot of shopping at discount or dollar stores. Some banks may believe that people who shop at such places are irresponsible or likely not to pay their bills. Use cash or gift cards when you shop at such places to avoid this.

Be Careful What You Buy

Other creditors see certain kinds of purchases as indicative of irresponsible behavior that can lead to debt.

This means that you shouldn’t charge alcohol or lottery tickets because some people will see purchases as signs of bad habits that can lead to debt. Charging a lot of fast food meals or expensive luxury items can also be seen in such a light.

If you do buy these things you should spend cash or use gift cards or prepaid debit cards. Don’t use checks because they can also be monitored by your bank.

Think Before You Buy

In today’s world its possible for banks and credit card companies to monitor every one of your purchases with a computer. That means they know what you’re purchasing, where you’re buying it and how much you’re spending on it. So it’s easy for a creditor make judgments about what you buy.

Every time you make a purchase you should think about it because it can come back to haunt you. Too many of the wrong kind of purchases can lead to bad credit.