There are many things that impact your credit score. Discover the top 5 Credit Card Traps that can cost you money and affect your credit.


  1. There is a lot said about the high compounding interest, where 18% is the norm in the current next to zero interest rate’ environment. Yes, this is the major financial trap of the easy credit;
  2. Have you read your credit card agreement? Yet it tells you everything about the interest free period and the billing cycle. If your credit card bill is paid past due the DATE on the statement, you will pay the interest not just for the few days past due, but rather all the way back to the first charge you made in the last billing cycle, which could be a month; or more;
  3. The same is true, if your bill is not paid in full. Should you pay anything but 100% of the statement amount (literally to a cent), interest is applied to the full amount of your charges backwards from the beginning for the billing cycle;
  4. Your credit score is worsened should you exhaust your full credit card limit. If your credit card limit is $3,000 and you use $2,999, your credit “looses” points. If you owe the same amount, but your credit card limit is $10,000 is are “winning points” as you have more than 50% of the granted credit still available;
  5. Payment protector. This type of insanely expensive insurance is very often added without much thought. Some plans charge $0.89/$100 on the STATEMENT DATE, which means you pay the premium of $89 per month for $10,000 of credit card debt regardless if the balance is paid in full by the due date.
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