Thursday, March 23, 2017

How To Avoid Top Five Credit Card Mistakes

Whenever you are dealing with credit cards, you should realize that you are playing with fire. Nevertheless, there are a great number of people out there who do not understand that, and make all kinds of big mistakes with their credit cards day-after-day.

Don’t Paying Late Your Credit Card Bill

If you don’t set up any kind of automatic payment, then it can be enticing to just put your credit card bill on a pile and get to it when you have time. Before you know it, some weeks have gone by and you’re late. If you leave it to the deadline, you might find that the payment won’t get there quickly enough. It’s a deadline for them receiving it, not a deadline for sending the money.

Paying late is a big mistake for an terrible lot of reasons. Not only you will be charged a late payment fee, as well your late payment will go on your credit report for every people to see. You may also find out that you lose any good rate you had, and your debt is automatically thrown onto the very worst rate the company provides.

To prevent late payment, you should all of the time try to pay a long time before the due date, at least a week before. If you’ve left it to the last minute, phone up to make your payment that way.

Being Taken in By Rewards

It is never, ever worth choosing a higher-interest card simply because it provides several kind of loyalty points, flight miles or any other things. Even if it provides a cash reward, it is unbelievable to be more than you would pay in additional interest. In the end, why would they give you free money? All ‘rewards’ do is pay you off with your own money to make you feel like you’re getting anything for nothing. You’re not.

Avoid Collecting Credit Cards

Watching several people opening their credit card wallet is a scary experience. It looks like they have about dozens of different credit cards in there, some of which they probably haven’t used in years. They have problems keeping track of all the different interest rates, balances and cards. Avoid to be one of these folks. You want to limit yourself to a maximum of three cards at a time. Any more gets to make you look over-committed in your credit report, and could get you declined for a bigger loan.

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Avoid Maxing Them Out

Your limit is just that: a limit, not a minimum! Whatever you do, don’t get a card and right away spend your whole limit. This appears very bad. It is always more beneficial to spend about halfway on a regular basis and pay it back. Wait for the company with increasing your limit, which they quickly will, and then you’ll get that additional money without the stigma of having a maxed-out card.

Reading the Terms and Conditions

After all, as ever, don’t sign anything you haven’t read at all! I know it’s hard going and you’re busy and all, but if you can’t handle to read the terms and conditions then you shouldn’t take the card. Pay special attention to whatever future increases in rates, and what kind of fees you can be charged.

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