7 Credit Card MISTAKES to Avoid (Increase Your Credit Score ASAP)



If you are wondering how to increase your credit score, avoid these 7 common credit card mistakes that beginners make and you can increase your credit score ASAP. In this video, I talk about things like why I always use a credit card vs debit card and mistakes related to credit cards such as closing a credit card, a high credit utilization rate with credit limits, minimum payments mistakes, carrying a credit card balance, and more!

When I was in high school, I used to think that using a debit card was better than a credit card because I didn’t have to pay it off and wouldn’t risk carrying high interest debt. But credit cards are much better because of the security they offer, the benefits they have and the cash back they earn all while building your credit score.

As I have used credit cards over the years, I noticed 7 common credit card mistakes that people tend to make, so in this video, I discuss each one and how you can avoid them. Avoiding these mistakes can help you to increase your credit score which will help you in the future.

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Check Out Some of My Other Videos!:

What’s In My Wallet – Summer 2021:
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Chase Sapphire Preferred Review:

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DISCLAIMER: I am not a financial advisor and the opinions in this video are my own. This video is for entertainment and educational purposes only. You must do your own research and should talk to professionals before making any financial decisions for yourself.

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32 Responses

  1. Sander R says:

    Regarding #2 – Closing a credit card: sometimes cards with an annual fee can't be downgraded or "product-changed" (e.g. You can call Bank of America to ask if they can change your Bank Americard to a Cash Rewards card, but the Alaska Mileage Plan credit card cannot be changed into any other card). At the end of year 1, make an assessment if the card is still worth it in year 2 (without the welcome bonus). If the answer is no and you can't downgrade or change to a no annual fee product, you have 2 options: 1. Call the bank and ask for a retention offer, 2. Close the card. However, make sure to ask if they can transfer your credit line to another card that you have with the same bank, if any. This way, your total credit limit won't take a hit. Also, by making this assessment after year 1, your average account age probably won't take a hit and might even improve.

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  3. Boss Bogan says:

    great video Daniel! Out of all the points, high "utilization" is the one that will tank your score in an instant even if its only on ONE card. This one is particularly dangerous since most people will think "oh the bank gave me a $5000 limit, no harm is spending up to that point" — while theoretically true, most banks view high balances as a sign of financial distress (when in actual fact, you may be paying off those balances in full every month) – the scoring algorithm doesn't care though lol. My advice is make sure your limit is at LEAST 3x to 5x your average monthly spend.. so if you spend $2500 a month, then your limit needs to be between $7500 to $12500 to ensure your score does not drop. OR pay off a substantial portion of the balance (3-5 days) BEFORE your next statement is issued. When it comes to reported balances, lower is better except zero lol.

  4. Invest with Tisan says:

    According to Nerdwallet, here are credit score rankings:
    300 – 629 Bad
    630 – 689 Fair
    690 – 719 Good
    720 – 850 Excellent

    Very insightful video. Good job!

  5. Finding Profits says:

    Great video Daniel and congrats on crossing 1000 subs.

  6. Kevin Yang // Personal Finance and Investing says:

    Amazing advice here! If you're able to handle your debt and never pay interest, credit cards can be so powerful!

  7. Dow's Stock Talk says:

    Great tips when dealing with credit cards

  8. Danny Wells says:

    Thanks for the info. Good video

  9. John Liang says:

    Solid advice man, for anyone starting out these points are key! On time in full, always.

  10. Geoffrey Hart says:

    I once took a group of 18 students to MIT for a science competition. The total hotel cost was around $4,000 which was paid by check from the science club's school account. However, the hotel still required a card to be on hold for incidents. I made the HUGE mistake of using my personal debit card for this. Well, the next day my wife found a pending charge of the entire hotel balance when her card was denied at a restaurant with her mom (luckily she had some cash). My heart sank. Obviously they dropped the charge but this took over a day to clear. To say I was stressed is an understatement lol, because I would have been overdrafted pretty hard if it had posted. So I too have learned about the peace of mind of using credit cards.

  11. AVENGER OF PUBG YT says:

    Good video

  12. Know Thy Assets - Ascend22 says:

    Solid! Informative and Engaging!

  13. Water Your Soil says:

    Good video. Congrats on 1,000 subs. Keep the videos coming.

  14. Nenad says:

    Good stuff here, Daniel! Keep the good information coming. A lot of people can benefit from what you have to say. You've got yourself a new subscriber here!

  15. Zac's Money FAQs - Investing & Finance Videos says:

    Congratulations! You Did It! 1000 Subscribers! Keep up the good work!

  16. SJG says:

    You're a superstar Daniel. Great job as usual. What do you think of the coming CSR and CSP upgrades? I think they're overrated, especially since the fee may go up.

  17. Bart Mazur- Money & Mindset says:

    Great tips

  18. Mikhail - Personal Finance says:

    You're 40 subscribers away from 1k!! That's awesome. Will be great to finally get monetized!

  19. Jared Pruett says:

    Great points Daniel! I almost maxed out a credit card a few years ago and paying the interest on that was really stressful it was like the opposite of passive income haha. It was a learning lesson and now I got it dialed in but had to learn the hard way. LIKED as always man keep it up!

  20. Sam says:

    I inadvertently lost a card with a 42 year history. Lost 3 years on average age and 20 points off my score. Still at 825, but I kick myself. That Amazon trick is good thinking.

  21. Lucid Finance & Investing says:

    Very good advice, I see a lot of people making these mistakes!

  22. hubbie mid says:

    What would happen if i have a flex and would want to downgrade a preferred/reserve?

  23. Mark Plymale says:

    Great video! Such valuable info for anyone in the credit card game. Good stuff as always Daniel. Should be hitting 1K within the week!

  24. Kai says:

    You’re able to upgrade that Wells Fargo 1% card to the new active cash 2% for no pull and everything stays the same. Just 1% > 2% now

  25. Avery Heilbron says:

    Great overview Daniel! You are building that audience fast. I personally have started getting more reward cards recently and have to remember to purchase with the old ones. Thanks for the reminder!

  26. Alwin Thomas says:

    So a friend of mine just got rejected for the Chase Sapphire Preferred Card because of a lack of history with Chase. She’s planning on opening a Savings account with them and applying for one of the Freedom cards. When do you think she should apply for the Freedom card? Is 2/3 weeks enough after being rejected for the CSP?

  27. Daniel Braun - Finance & Credit Cards says:

    What other mistakes have you made with your credit cards? There’s many mistakes out there to make so use your credit cards wisely! Subscribe for more videos like this: https://www.youtube.com/channel/UCW1y4R9sbfkHQ-2uN3MDENQ?sub_confirmation=1

  28. D'Angelo says:

    1. Overspending/Maxing out credit card
    2. Closing credit cards
    3. Closed card for inactivity
    4. Carrying a balance
    5. Not having an emergency fund
    6. Missing a minimum payment
    7. Not using credit cards

  29. Brad Snyder says:

    Very good advice Daniel!

  30. Reno James says:

    Credit cards are underrated! Gotta build that credit. Loved the video!

  31. Cazaril Olsen says:

    Great video, keep them coming! The Amazon reload feature was new to me.

  32. Hunter Radiant says:

    I always have the urge to close my Macys Amex Credit Card but have never had the courage to cancel it yet.
    Please make a video on Store Credit Cards!

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