How the Fashion Bug Credit Card can Affect Your Credit

A Fashion Bug credit card is a great option for women who enjoy the brand, but it can be dangerous to your credit. The store that offers fashion apparel and accessories offers a store card that cannot be used anywhere else, but it can be used in stores to make purchases that do not exceed the credit limit given to cardholders. However, many women are unaware of just how a credit card from a store such as this can negatively affect their credit.

For those who are not familiar with how credit works, understanding that is what is going to make the difference between increasing your credit score and decreasing your score. While every situation is different, there are several factors that negatively affect all credit scores, and each one is what you must be careful of. We’ve rounded up the three most common credit mistakes you can make with a store card and laid them out for you to review.

Applying for the Discount

If Fashion Bug is offering a discount to those who want to apply for a new store card, they’ll get more people to apply. That’s the entire point of offering a specific discount or bonus for applicants. However, it’s what gets most women in trouble. Many women will apply for the card for no other reason than to receive the discount thinking that if they choose not to use the card, it’s fine because they’re not hurting their credit. However, you are hurting your credit. That application alone is going to negatively affect your score anywhere from 5 to 8 points.

Making Even One Late Payment

Mailing your payment before the due date does not mean it’s considered on time. You can mail it three days before it is due, and if it isn’t received and processed by the company before you’re date, it’s considered late. This means your interest rate will skyrocket and your credit score will drop.

Maxing it Out

You have a credit card, so why not max it out, right? Wrong! If your outstanding balance is more than 30% of your credit line, you are going to see your credit score affected negatively. You should always keep your card balances at or below 30% of your available credit, but paying off the card in full each month is the preferable option.

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