Credit Card Mistakes to Avoid
Having a credit card is very useful. When used properly, credit cards could enable you to travel the world free of charge. Credit cards could also be used to provide a large amount of cash back or make a lot of money. People with financial difficulties could use these very tools to boast their burdens. Improper use of credit cards could be a total disaster. Avoid these common mistakes and stay safe.
Never open many credit card accounts. Please do not. It’s a wrong thing to do. Here is why you should not: You lose track of your spending. Your credit card score could be dented. Taking advantage of rewards could be difficult. If you feel you can handle more cards, make sure you have at least six months.
It is good to always pay the balance every month. Since credit cards are a form of revolving credit, always pay your balance in full every billing cycle. When you are unable to pay your balance in full, the charges you’ve accumulated revolve to the next billing cycle. An interest is charged on the balance to allow your balance rolled over. 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. According to credit card experts, that’s absolutely wrong. 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. Doing such will only hurt your credit score. 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. You will have no other option than visit a WireLend to take out a loan to 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. Throwing away free money is one of the biggest mistakes done by most new credit card users. 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 word. According to credit card experts, all new persons to the game should play it slow and smart. Cards with annual fees should be avoided by new users. Anybody who uses their credit card properly will discover the many benefits that come along.
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