Times you should not be using your credit card

Credits are important financially but could be the death of your financial stability. if people put more efforts into using the credit cards wisely , the problems associated with credit card debt won’t be as much as they are today.

Having access to a large credit line does not mean that you can use the credit card as you please. It could prompt you to purchase more things but this, in the end can lead to major credit card debt that could ruin you financially.  Here are a few instances where you should not take your credit card out of the pocket to make the payment.

Do not use the credit card when you cannot afford to clear the balance

This is probably one of the largest reasons you should not use your credit card. If you cannot make the payment for the purchase in cash, why would you pay with the credit card? What it really means is that you cannot afford to make the payments on your own.

For some credit card issuers, swiping the card with the knowledge that you could not pay for the item with cash could be considered to be some type of fraud.

Do not use the credit card for leisure

You can end up overspending on the card just by spending it on leisure activities. some people tend to shop to make themselves feel better but   shopping is just a temporary fix to deeper issues.  there are cheaper ways to solve your emotional dilemmas and they should not have to involve spending more money, especially money that you do not have yourself

Do not swipe the card when you have no idea what the available credit is

Many banks no longer have the over the limit fees imposed on the credit cards. many of them have replaced the credit limits with spending limits. This, however, does not make it ok for you to exceed the credit limit.

If you opted to go for the over the limit transactions, it could trigger the interest rate increase when you go over the limit.  A maxed out credit card is a bad thing for your credit score and will be difficult to pay back. Make sure you confirm the available credit before you go spending on the credit card.

Avoid making credit card purchases when you apply for mortgage

Mortgage lenders do not favour people with large credit card balances, especially when you are applying for a mortgage for the first time. Having more credit card debt makes it harder for your to qualify for a mortgage because it means you will have it as hard when it comes to clearing the mortgage payments. Save the big credit card purchases until you have the mortgage process complete if you do not want any issues with the lender

Do not use the credit card when you are already in debt

This may sound a bit obvious to everyone but it actually is not. Some people tend to make purchases before they pay off their old debts, and this could lead to major debt that ruins your financial status.