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Don't Make These Credit Card Mistakes

Everyone that owns Visa or MasterCards has made a mistake with their credit card at some point in their lives, but they often don't know that they've made a mistake. Small mistakes can raise your interest slightly, or they simply won't help raise your credit score. If you're going to use a credit, debit, or prepaid MasterCard, it's important to know how to use them correctly. Here are a few mistakes you should try to avoid when using MasterCards:
Lowering Your Limit -- Many people that have spending problems will usually ask the provider of their MasterCards to lower the amount of money that they can access. However, you need to know that your credit score is determined by the amount of money you owe compared to the amount of credit you can obtain. Those with a $10,000 limit and $5,000 debt will have a much higher credit score than those with a $6,000 limit and the same $5,000 of debt. You may not want to lower your limit if you have a lot of debt, as that could drastically raise your credit score.
(It's best to use a prepaid MasterCard if you have spending problems. It will limit the amount of money you can access, but won't lower your credit score.) Opening Too Many Cards -- It's amazing how many people will request a new credit card when they have maxed out their credit on a previous card. Other people think that using a lot of cards at once will increase their utilization ratio, which goes towards improving their credit score. However, requesting credit cards from too many banks or companies at once can actually raise your credit score, and can cause you to pay more interest on each card. Every time you are rejected for a credit card, that goes on your credit history - and stays there. For this reason, it's wise to only apply for cards you know you'll get approved for, and keep the number of cards you own to a healthy limit.
Negotiating Down a Debt -- Do you own thousands of dollars to your credit card company? If you do, you can call in a debt negotiation company to settle your MasterCards debts. This will help you to get out from under the burden of debt, but it will seriously affect your credit score for the worse. Any time you get away with paying less than what you owe, you are basically showing the credit card companies that you can't handle debt properly. This causes them to raise the interest rate, and you end up losing more money.
Overusing a Prepaid MasterCard -- Many people think that using a prepaid MasterCard is a good way to rebuild a poor credit score, and so they go out and stock up on these MasterCards. However, the truth is that these cards will not affect your credit score at all, so you're basically buying a gift card you can use anywhere. If you want to rebuild your credit score, the only thing that will work is using a credit card and being faithful to pay off debts.
Avoid these simple mistakes pre paid master cards , and you can keep your credit score mastercard prepaid debit card as low as possible!