4 Mistakes utilize credit cards – Credit card offered by the financial manager with a vigorous campaign, which offers a variety of benefits, many people decided to nduwe or have a credit card. But in the end they are trapped in debt big enough without them knowing it. Actually, we can avoid problems like this with a credit card. If we are careful enough, we can still enjoy the convenience and benefits of using a credit card without tripping problem.
As quoted from girlsjustwannahavefunds.com, the following four mistakes you should avoid the use of credit cards:
Did not read the agreement
Opening a new credit card account means making a pact like when we buy a car or open a new savings. And just like other legal agreements you signed, the agreement details are usually printed in small letters. But for most credit card holders, their first mistake was not reading the terms of agreement for their credit card.
Though the instructions contained in the agreement about the costs and penalties, the amount of interest we pay, etc.. In addition, most people think that the offer or promotion they get when they first opened credit cards will continue to apply. Though not like it. We need to know when the promotion will end, and what percentage of the interest we have to pay after the promotional period ends.
Having too many credit cards
The advantage to having many credit cards is that we can show that we are able to manage multiple accounts. But this requires discipline, and if we do not have the discipline we will be stuck in the problem. Many people expect to get a lot of prizes by using a variety of credit cards. But hope is not in accordance with the amount of risk that we get. In addition to more debt we have to pay, if we are late to pay then we must be prepared to lose the reward offered.
One way to maximize profits without being stuck in a huge debt is to use a major credit card with a credit limit that makes sense, and other cards that are used only once every six months to buy something that can be paid immediately. Our credit card score will go up and we do not need the confusion to pay the bills.
Paying the minimum amount, or late payment
This is what often trap many people. The small number of bills to be paid compared to the prices of goods that we can buy with a credit card to make our interest to have a credit card. But if we can count carefully, so sometimes we find that it takes ten to fifteen years to pay off our bills when we are only paying the minimum amount of our credit card bills. And like putting salt on a wound, we still have to pay interest on our bills.
Use the online payment calculator to show how long it will take to pay off credit card bills and how much interest you’ll pay if you’re only able to pay the minimum bill every month.
Late pay will make us get high interest and penalty-win-win situation for the company credit card, but painful for credit card holders. In addition, credit card late payment will damage your credit score card in the future. One way to overcome this is to make automatic payments through your bank’s bill payment schedule credit card.
Using a credit card in lieu of cash
It looks very nice and easy to use a credit card in lieu of cash, so you carry this card with you wherever you go and when you shop. But we must remember that we are subject to interest and fees each time we withdraw cash from our credit card, so we ended up having to pay more for any cash that we take.
We should be thorough in using credit cards. Check the details of your credit card bills and make sure all transactions are valid. If you find any errors or suspicious transaction, immediately contact your credit card company to resolve the issue.