5 Common Credit Mistakes That Keep You in Debt

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1. Opening New Cards to Pay Off Old Debt

It feels like a clever trick, using one card to cover another, but it’s really a trap with a shiny bow.

All you’re doing is moving the same debt to a different spot, usually with more interest later.

Here’s why this mistake keeps you stuck:

• You add more temptation, since that “new card smell” makes you want to spend again.
  
• You build more debt, not less, as balances quietly pile up.
  
• You hurt your credit score, since new accounts lower your average age of credit.
  

👉 Here's How You'll Do It: Instead of opening another card, make a strict payment plan and tackle what you already owe.

Make It Easy: Use Undebt.it to organize your cards and plan the fastest route out of debt.

2. Paying Less Than What You Owe

Paying the minimum might feel safe, but it’s like trying to drain a pool with a teaspoon.

You’re barely touching the principal while interest eats the rest.

Here’s why this habit kills progress:

• You waste money paying interest instead of balance.
  
• You stay in debt longer, even when you’re “paying on time.”
  
• You trap yourself, because the balance barely moves.
  

👉 Here's How You'll Do It: Pay at least a little extra. Round up every payment by $20 or more to speed things up.

3. Using Too Much of Your Credit Limit

Your credit utilization tells lenders how well you handle money. And using too much of your limit screams “risky.”

Even if you pay on time, high usage can still crush your score.

Here’s why keeping balances low matters:

• You look responsible, showing you don’t rely on credit to live.
  
• You protect your score, since utilization makes up a huge part of it.
  
• You gain flexibility, keeping credit open for true emergencies.
  

👉 Here's How You'll Do It: Keep your balance under 30% of your total limit (10% is even better).

Make It Easy: Track your real-time usage with Credit Karma so you never cross your ideal limit.

4. Closing Old Credit Cards

Closing an old account might seem tidy, but it quietly hurts your score.

Your oldest accounts prove your reliability. Deleting them erases your history.

Here’s why you should keep them open:

• You maintain a long credit age, which lenders love.
  
• You keep a higher limit, which lowers your utilization ratio.
  
• You protect your score, avoiding unnecessary dips.
  

👉 Here's How You'll Do It: Keep old cards active by using them once in a while for small purchases.

Make It Easy: Set a recurring low-cost subscription (like Spotify) on your oldest card to keep it open.

5. Applying for Too Many Cards Too Fast

Getting multiple new cards feels empowering. until your score takes a hit from all the inquiries.

Each application counts as a “hard check,” and too many at once looks desperate to lenders.

Here’s how this mistake keeps you in the hole:

• You lower your score, since hard inquiries stack up fast.
  
• You add more temptation, with more credit to overspend.
  
• You spread your focus thin, juggling too many accounts.
  

👉 Here's How You'll Do It: Space out new applications at least six months apart to protect your score.

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