5 times when you should avoid using your credit card in Vaughan

 A well-managed credit card or good credit recovery with the help of debt help is

highly dependent on your responsible use of your credit card.  Below are 5 times when it would be best to put your credit card back in your wallet.

1. When you can't afford to pay off the balance

One of the signs that you shouldn't be using your credit card is if you couldn't afford to pay for the purchase with cash. This is particularly dangerous for your credit profile if your purchase causes you to exceed 75% of your available credit. If you fail to pay off the balance and find yourself dragging that balance month to month, lenders will consider you to be high risk in terms of creditworthiness. The best way to avoid getting into debt and hurting your credit rating is to seek aid from credit counseling in Mississauga.

2. When you have not paid the balance

if you're about to make a purchase, but you still haven't paid off your credit card balance, you should avoid using your credit card before a debt consultation in Vaughan. If you've already created a budget and are in the process of paying off your debt, adding more purchases to your credit card could derail your progress and trigger a long debt cycle that will be hard to get out of. 

3. When you don't know your available credit amount

If you continue to use it without knowing your account balance, you may exceed your spending limit and you may have to pay additional fees. It will also lower your credit rating. The safest way to use your credit card again is definitely after consulting with consolidation debt Vaughan.

4. When you apply for a mortgage

Another important time when you should avoid using your credit card is when you want to apply for a mortgage. This is because mortgage lenders often consider your debt-to-income ratio.  Therefore, if you are planning to apply for a mortgage, make sure you have paid off any large balances you have on your credit card with the help of a loan for debt consolidation in Vaughan, and wait until you have completed the mortgage application process before making any other purchases.

5. When you are in a heightened emotional state

If you are in a heightened emotional state, it is highly recommended that you avoid using your credit card. If you are already feeling overwhelmed by your debt load, it would be wise to seek help and booking a free consultation with a Credit counselor.

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