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Several Hobbies That Put Your Credit Score at Risk

 

There are several definition versions of the term hobby. You have your own definition too basing from a different perspective. However, all the definitions at an angle, they converge to the same meaning. A hobby refers to any activity that you enjoy doing when free, at your spare time. What is it that you like doing at your spare time? Swimming? Reading? Travelling? Oh! I just listed my hobbies unknowingly. Hobbies however good to us, they can ruin the reputation of our credit card’s score. The expenses accrued after exercising this hobby fall under our personal finances. The responsibilities of managing our personal finances is not arguable, we have the obligation to. Managing our expenses can absolutely protect our credit card. This is evidently spelt out when at times we get obsessed and apply for consecutive credit cards in a small span of time in a bade to finance our hobby’s needs. The new applied credit cards are the ones that are mostly used to award you credit card scores. Imagine defaulting one of them! Your card is at risk. This article, though brief, will sensitize you on which hobbies that can put your credit card in jeopardy.

 

Is your hobby in Reading?

Making yourself lost in books at your spare time may be your hobby. You are not alone, for decades, many have considered reading as one of the best ways to pass the time. Many take advantage of the local libraries where they borrow weekly reads. This alienates them with the quagmire of having to incur an extra coin to purchase a favorite book. However, the borrowed books have limited time, after which you should return. For I am very punctual in returning due dates. Though I might not be through with it, I always go and renew the due dates. Most of the libraries are adopting the practice of collecting fees from the books that are returned after the set dates. In extreme cases, these collection agencies may report your failure to settle the payment to the credit bureaus. Guess what next! A black mark will be indented on your credit card. This destroys the reputation of your card for up to six years. To avoid tainting your credit card, adapt my plan, return your book earlier or pay the fine fee accrued promptly. Just discipline yourself to be punctual with the due dates. Avoid overstaying with the borrowed books, doing so leads to rack up of fine fees that won’t auger well in the due time.

 

Traveling to explore

Travelling is fun. Every person at one point in his life would desire to visit a particular place. Some do this after saving for it. For me it is not easy. I cannot wait, or be patient to plan for a journey in two year’s time. This is a bracket that encloses most of the people. I like exploring exotic locations. When free, like any other person, I like travelling. As you are reading this, I know you are planning when your next trip is. Whiling away some hours out of work schedule is becoming rampant. It is important due to the change of climate and the monotony of the obvious places at either your home or office. You can bet me that the temptation to forget about the life back at home is overwhelming. This partial negligence is potentially harmful to your credit card score. At this time you tend to forget all pending bill payments which the credit bureau won’t hesitate to refer in order to award you credit scores. Just failing to pay your designated bills on time is a substantial risk to your credit score. There are many ways you can device to avoid this fate. For instance, you can set a mail reminder to alert you of the bills to be paid on time. Alternatively, you can opt for an auto payment mode, which pays the due bills on time. However, this calls for frequent confirmations, to prove sufficiency.

Home improvement and garden servicing

Relaxing in your garden or home also can be a good way to while away your spare time. Working on your garden or home needs frequent trips to several home improvement warehouses. In the process, you may opt to apply for a retail credit card. This is quite sensible when financing small projects in your garden or home. However, it is a bad move to dare finance big project by applying for several credit cards at a small span of time. Financial reports show that, ten percent of the credit score comes from the newly applied credit cards. This rampant credit application is perceived as if you are in a financial problem. This scares away your potential creditors and hurts your credit score. To avoid this, ensure a span of about six months before applying for a new credit card. This is a tactic I have been using. Believe me it worked out. My garden project is finished and running while my credit score is hiking up.

Going to shopping

Shopping is another hobby that can jeopardize your credit card score. If you always crave for fashion like I do, you can concur with me that shopping is a threat to your credit score. There is never enough with shopping .Every new dress, shoe or watch is trendy and you feel that it appropriate to own it. When I have the latest dress fashion I feel satisfied. With the growing technology, shopping has been diverted into online. Just a click of a button away, and you purchase your favorite deal. However, this satisfaction comes with either a blessing or a curse to your credit score. Almost 30% of your credit score rely on the amounts owed. The higher the debts, the lower the credit score and vice versa. So, to escape this embarrassing moments, maintain your debts below the stated amounts and endeavor to pay the dues in time. Ensure you distribute the monthly bills to several cards to maintain the debts as low as possible. In addition, settle the balances within the time limits. Watching movies

This is another unique venue through which many direct their energy to spend their spare time. On my part, I enjoy sharing movies with my friends but at a fee. I have got several credit cards that get used to access the movies in store. This venue may be challenging when it comes to expenses and time management. For instance, when watching a series movie, you can not rest until you drain it to the last drop. This leads to one accumulating bills, which in time are meant to be settled within hours. This is a potential threat to your credit score. Be careful when it comes to the movie industry. Automate the bill payments.

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The Fastest Growing Personal Finance Blog in 2017

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One comment

  1. Yes it is necessary. What if soeomne steals your credit card or you lose it and the person who has/finds it starts making random purchases that you wouldn’t normally make.

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