Avoid These Credit Card Mistakes
Credit cards are very important assets. 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. 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.
Never open many credit card accounts. Please do not. It’s a very terrible thing to do. Here are the reasons: You lose track of your spending. Each account opening could stain your credit card score. 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. Since credit cards are a form of revolving credit, always 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. You will only be allowed to do so upon an interest charged on the balance. Rewards are never allocated to people who possess such habits. Profits accumulated by you could also be cancelled.
Many accounts have been seen closing down. They are misled by an idea that if their account is inactive, the only solution is to shut their accunnts. It’s totally wrong according to credit card experts. If you had debts and paid them off, do not close your account, simply keep them safely. Therefore feeling it’s not important to keep your account. Such actions will only affect your credit score negatively. The worst happens when you decide to open a new account to replace the previous one.
Going for cash advances: This is not a right decision to make. Taking a cash advance will definitely lead you to WireLend to take out a loan to pay off your cards. Cash advance carry an interest rate of several points higher than your APR. 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. But it is anyway. Most new credit card users usually throw away free money. 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. Any new person to the credit card game should always play it slow and smart as advised by credit card experts. Cards with annual fees should be avoided by new users. When used properly, credit cards could be a great source of financial assets.
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