Worst credit card mistakes
Credit card offers seem to be popping up everywhere, all of them promising to offer you something you deserve or need.
But that’s only what they want you to think. Avoid falling into the credit trap with these simple tips:
•
One more credit card is already too many
Don’t take every offer that comes along. Ask yourself, “Do I really need another credit card?” Too many credit cards is not a good thing
and even if you don’t use the card, multiple open accounts could have a lender to questioning what could happen if the account holder gives
in to temptation and exceeds the credit limit.
•
Don’t give in to introductory rates
Most people open a new account because that new card can transfer other balances to a no-interest account which can help them manage their money better.
Don’t be caught off guard when the teaser period is over (usually about six months) and you find out that the regular “reasonable” rate is not reasonable at all.
•
Always, always read the fine print
That zero-percent or low interest rate that grabbed your attention? It actually has an expiration date and it can usually be found in the fine print.
It’s also how you can find out about any balance transfer fees, as well as any other limitations you may have overlooked when filling up the application form.
•
Steer clear of the rewards when deciding what card to get
The credit card granter’s job is not to help you choose the right card for you and help you save money. Instead, it’s goal is to extract as much
money from you as possible. Because underneath all the advertisements is a business. So get a card that’s right for you and not because of the free
trip abroad, points, cash back or a rebate.
•
Go rate shopping
Compare interest rates and search for the best possible rate out there. If you’re struggling financially, you might end up paying a higher interest rate.
•
Pay the full amount
Credit cards were made for convenience. It’s also made to be paid off at the end of every month. Most people pay only the minimum rate and
what they don’t realize is that it’s going to be difficult to pay off loans at a high rate.
•
Pay on time
Paying late has a lot of consequences than you bargained for. Although it’s definitely better to pay late than never, it’s going to reflect poorly
on your credit report, damage your FICO score and make it harder to get better terms for future loans and accounts. Facing a late-payment charge is
also something that you must avoid.
•
Always check your monthly statement
Checking your monthly statement has more benefits than you think. Aside from enabling you to pay on time, checking your monthly statement
allows you to see if the charges are correct. And don’t wait too long to question a charge as it can mean that you have accepted it.
•
Live within your means
Always be mindful of your credit limit. It’s there for a reason and it’s to protect you from overspending. Also, carefully assess if you
truly need something before taking out your plastic and swiping it. More often than not, the things that you buy today will stay in the corner
of a room for a long time and collect dust.
The bottom line is: exercise control.
It’s definitely better to be in charge of your finances while you still can manage them than be overwhelmed by so much debt.
Related Article: Credit card Holder protection laws
LATEST ARTICLE
Credit card Holders protection laws
Getting your own credit card certainly has its perks but before you fill up that application form and do get one, be aware of
the existing credit card laws and also be assured that the law is going to protect you. Read on and always be legally ready:
Read More »
Medical Debt - Medical Bill Options
Nurturing a good credit score is important as this is where your ability to apply for credit and what kinds of terms you will be offered depends on.
Paying bills late will always be seen negatively while reduced debt is seen as a positive thing. Paying your hospital bills late is never a good thing.
But if you’re struggling to do that, here are a few tips that should help you to eliminate your hospital bills and get a good credit score.
Read More »