Ask Ash Cash: Things To Be Careful About When Using Your Credit Card

“ASK ASH CASH” KEEPS US IN LINE WITH THOSE PESKY CREDIT CARDS! CHECK IT!’s resident Daily Word guru and all-around inspirational guy, Ash Cash, is back with his latest installment of “Ask Ash Cash.”

Watch the video below his response, as he offers more sound advice to readers:

Peace and Blessings Family!! Today’s installment of “Ask Ash Cash” comes from Ms. Laura Goldstein… But, as I said last week, I also want to hear from you. If you have any business or finance questions, please tweet me (@IamAshCash) using #AskAshCash, or e-mail me your video or question to I also stream live every Monday at 9PM on!!

Dear Ash Cash: What are some things to be careful about when using my credit card?

There are many things that you should consider when using your credit card, but the two most important are: 1) Keeping your usage down and 2) Watching out for interest rate increases.

It is important to know that you should not be using your credit card to make everyday purchases for items like food, clothing, and gas. Credit cards should be used for emergency purposes only; using your credit card as a substitute for cash can put you into serious debt before you even know it. With that said, make sure you stay within 30% of your credit limit to avoid damage to your credit score.

Your credit score is broken down into five (5) categories… 35% is Your Payment History, 30% is your Usage, 15% is the Length of your Credit History, 10% is your New Credit, and 10% is your Credit Mix… With Usage being a large part of your credit score, make sure you are keeping your balances low to help keep your score high!!

Lastly, pay attention to your interest rate, and make sure it hasn’t increased. Your credit card’s interest rate can increase when you’ve defaulted on the original credit card terms. For example, you were late on a payment, went over the credit limit, or bounced the check for your payment. Before February 22, 2010, you could’ve even seen an increased rate if you were late on a payment to another creditor – a practice known as “universal default” – but due to new laws implemented by President Obama, this is no longer the case!

Ash’Cash is a Business Consultant, Motivational Speaker, Financial Expert and the author of Mind Right, Money Right: 10 Laws of Financial Freedom. For more information, please visit his website,