Twenty Bad Credit Choices

David Sklar & Associates – Toronto Consumer Proposal and Bankruptcy Trustees,
Share the Lessons of Successful Debt Management

Many of the people we counsel, here in the Greater Toronto Area, share a common problem – they failed to recognize when they were making bad credit choices.

Here is a list of 20 things that are usually bad credit choices:

1. Buying something on credit that you would never buy, if you had to save for it first.


2. Not knowing what your credit card interest rates and penalties are.


3. Buying something on credit that you want, rather than need.


4. Buying something on credit you don’t really want or need - just on impulse.


5. Getting a cash advance on your credit card.


6. Applying for a credit card simply because you received an offer.


7. Consolidating your unsecured credit bills by taking out a home equity loan - again.


8. Buying something on credit because you have room left on your credit card limit.


9. Getting a credit card and not reading the fine print in the contract.


10. Buying small items on credit, when you have the cash in your pocket.


11. Paying yearly fees to have a credit card because you like the colour of the card.


12. Buying something on credit only because of your credit card’s award program.


13. Paying a large restaurant bill with your credit card - when everyone else wants to split the bill.


14. Being happy and excited when your credit card company increases your card limit.


15. Counting on credit cards as your only emergency fund.


16. Buying something on your credit card because it makes you feel important. Note: You are important; you don’t need a credit card to prove it!


17. Not checking your credit card statement.


18. Not recognizing legitimate purchases on your credit card statement - because you do not keep track of your credit card usage.


19. Not paying off your credit cards in full, every month.


20. Missing credit card payments.

Almost everyone (us included) have been guilty of making one or two (or more) of the above bad credit choices at some point in our lives. However, if you continue to make many of the above choices and using credit is the norm for you, rather than the exception – it might be time to re-think your approach to credit.