Credit Card Mistakes

Maintaining a credit card is actually a lot more complex than it looks.

You have to be really smart and cautious to make the right decisions and avoid mounting fees and penalties. However, despite expert advices on TV and online, millions of people still make the following credit card mistakes, either intentionally or not. Getting into trouble with credit cards can actually be easier when one doesn’t pay attention or just refuses to do his/her own research.

The first and highest rated of the credit card mistakes is the failure to shop for the best rates. Those who want to apply for credit cards should take some time to do their research on the rates, fees, and conditions attached to them. The first decision that you need to make is to determine which feature you need or want the most. Do you need to transfer balances, to get lower rates, or to reap rewards for purchases? This way, you can lessen your options and really get to study credit cards that have these features. Other credit card mistakes include getting ensnared with introductory rates that always shoot up after the promo period.

The most common in the list of credit card mistakes is the failure to read the fine print in the card’s terms and conditions. The general strategy of credit card companies is to print attractive features in large fonts and the conditions attached to them in fine print. Credit card mistakes often root from this. You should make it a point to read every little detail in a credit card disclosure form. This way, you can avoid getting trapped into something you’re not really into.

Another of the most common credit card mistake is the misuse of features such as balance transfers and cash advances. Transferring balances is usually done due to introductory rates that seem very appealing at first glance. If you’re a transferring a really large amount, make sure to know the types of rates that apply after the promo period. Getting cash advances is also one of the most common credit card mistakes that you can commit. The cash advance feature should only be used during emergencies since transaction fees and APRs for cash advances are usually higher than standard purchase APRs.

Other common credit card mistakes have something to do with billing statements. Not reviewing billing statements and even credit reports is never a good thing. They contain all the activities made by the credit card. Studying your billing statement often will help avoid unauthorized use and rectify errors. Keeping tabs on your credit report will also help you avoid mistakes that may affect your rating in the future.

The most common credit card mistakes related to paying bills include not prioritizing them, not paying them on time, and paying only for the minimum amount. Doing all these will just rack up penalty fees and increase interest rates. The key to saving money in credit cards is avoiding all unnecessary fees.

Most of these credit card mistakes are done unknowingly by consumers. These can actually be avoided when credit cards are used only for important expenditures.


Source: Credit Cards For People With Bad Credit Rating

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