Credit Card Mistakes You Should Never Make

Owning a Credit Card Can be a Good Thing but it can also be a Bad Thing

Most people think of credit cards as something of a solution, whether it is for a low income, planning a big purchase or to make ends meet every month. However, credit cards are really not for anything of the sort. Few people realize this and most end up making severe credit card mistakes that they should never had made!

Here are credit card mistakes that you should absolutely not make.

Getting Too Many

No, having too many cards is not a status thing. You can do very well with just 1 card; lots of people do well with 3 or 4 cards, but if you find that the balances are running too high, it is a red flag. Getting too many of them is certainly not a solution to anything and it can land you in difficulty if you are trying to get a mortgage.

Being Misled by Introductory Rates

This is something a lot of people do. You may think that you can make a big purchase with a card that has a 0% APR introductory rate. But did you know that if you don’t pay up within the period, you pay interest retroactively? It can be a big shock when you are charged 18% to 24% APR after the honeymoon period is over!

The Fine Print

Not reading the fine print before agreeing to all the terms and conditions is a fatal mistake that too many people make. Don’t make it yourself!

Wrong Reasons for Choosing

When reading up or researching cards, it can be easy to get lured by huge travel rewards where you picture yourself taking a free vacation on a beach! But it does not happen that way! Choosing a card for the wrong reasons or one which has nothing to do with the spending habits you have is a terrible idea!

Apply for a Store Credit Card

Just Making Minimum Payments

Do not make this common mistake. Your goal should be paying off all balances at the end of every month. If you make minimum payments, it can be very tough when you have to pay at very high interest rates!

Not Checking Monthly Statements

A lot of people do this, which makes them miss the due dates of making payments or even not detecting errors.

Your Credit Limit Has Been Exceeded

Doing this will have a negative effect on your credit score. And it is something that is quite common among people, especially those who make big purchases.

Late Payments

This is better than not paying at all, but it will get reflected on your credit score, something you don’t want. Also, the late payment fee can be more than your minimum payment.

Choosing before Comparing

Choosing a credit card without having compared and contrasted a few is a novice mistake.

Spending too Much

This is by far the most common mistake that people make. Spending more on credit cards than they can afford is something that is common and sad.

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