Mistakes Credit Card Holders should Steer clear from
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. These same tool can be used by a low-income family to adjust their financial burden. Improper use of credit cards could be a total disaster. The following are some of the common mistakes that you should avoid by all means.
Opening many credit card accounts is suicidal and should be avoided. Please don’t. It’s a nasty and awful thing to do. Here is why you should not: You lose track of your spending. Your credit card score could be dented. It will be hard to take advantage of available rewards. Give yourself some good time before you could handle another credit card.
It is not a good practice not paying the balance every month. Since credit cards are a form of revolving credit, always pay your balance in full every billing cycle. Failure to do so, the charges you’ve accumulated are rolled over to the next billing cycle. You will only be allowed to do so upon an interest charged on the balance. Such habits have denied many people from being rewarded. There is also a risk of all your profits being nullified.
Lack of credit card usage has led to accounts closure. They are misled by an idea that if their account is inactive, the only solution is to shut their accunnts. Credit card experts do not support such decisions at all. Closing cards as you pay off your previous debts is not advised at all, just store them safely. Therefore feeling it’s not important to keep your account. Your credit card score will be affected negatively. Replacing your account by opening a new one will only dent your credit score more.
Taking out cash advances: This is a total wrong decision to make. You will have no other option than visit a WireLend to take out a loan to off your cards. An interest rate of several points higher than your APR is usually carried by cash advances. Not only that, interests start accruing immediately while you have been subjected to a host of fees.
The last common mistake here may sound wacky. Actually it is ridiculous. Throwing away free money is one of the biggest mistakes done by most new credit card users. By not taking full advantage of services that most credit card companies offer. Do your due diligence to follow up any bonuses that are given as a result of opening a new account.
Final thoughts. According to credit card experts, all new persons to the game should play it slow and smart. Newbies should stay away from cards with annual fees. Use your credit card properly and discover how you could benefit abundantly.