Avoid These Credit Card Mistakes
Having a credit card is very useful. When used properly, credit cards could enable you to travel the world free of charge. Making a lot of money using credit cards or using them as cash back provider has been an experts’ trend. Low-income families could use these same tools to lighten their financial burden. Using them inappropriately can cause you serious trouble. Avoid these common mistakes and stay safe.
Never open many credit card accounts. Please do not. It’s a wrong thing to do. Here are the reasons: You lose track of your spending. Your credit card score could be dented. You will not get rewards. If you feel you can handle more cards, make sure you have at least six months.
Not paying the balance every month is a wrong route to take. Credit cards are a form of revolving credit and therefore you should pay your balance in full every billing cycle. The charges you’ve accumulated are carried forward to the next billing cycle any time you fail to pay your balance. An interest is charged on the balance to allow your balance rolled over. Rewards are never allocated to people who possess such habits. Profits accumulated by you could also be cancelled.
Many credit card holders are tempted to close down their accounts. They are misled by an idea that if their account is inactive, the only solution is to shut their accunnts. According to credit card experts, that’s absolutely wrong. Do not close your account simply because you had debts and paid them off. Therefore feeling it’s not important to keep your account. Such actions will only affect your credit score negatively. Replacing your account by opening a new one will only dent your credit score more.
Taking out cash advances: This is not a right decision to make. Sooner or later you will be visiting WireLend to take out a loan to pay off your cards. Cash advance carry an interest rate of several points higher than your APR. That’s not all, you will be subject to a host of fees and interests will begin accruing immediately.
The last common mistake here may sound wacky. Of course it is. Most new credit card users usually throw away free money. By not taking full advantage of services that most credit card companies offer. If you open an account that has sign up bonus or any other bonus, do your due diligence to collect your bonus.
Final word. According to credit card experts, all new persons to the game should play it slow and smart. Avoid any cards with annual fees. Use your credit card properly and discover how you could benefit abundantly.