What is considered a form of credit abuse?

Consistent late payments on accounts are considered a form of credit abuse because they demonstrate a disregard for the responsibility tied to borrowing. When a borrower consistently makes late payments, they not only incur late fees but also negatively impact their credit score. This behavior suggests that the individual is failing to manage their credit in a responsible manner, which may lead creditors to view them as a high-risk borrower. In turn, this can result in higher interest rates on future borrowing and a series of other financial consequences.

In contrast, paying off loans early, using credit cards responsibly, and maintaining a low credit utilization ratio are all positive financial behaviors that indicate good credit management. These practices can lead to a higher credit score and better borrowing terms in the long run.