Some of the top Credit Card Mistakes

Owning a credit card is a great privilege and luxury which matches today’s extravagant lifestyle and comforts. Always remember that late payment of credit cards is like playing with fire. Most of us do not understand the implications of late credit card payments and they realize their mistake only when it is too late to rectify it. You can also take advise of Your Personal Financial Mentor because he can help you avoid these mistakes and build a good credit history.

Late Payments

If you own a credit card, it would be wise to set up the automatic payment facility so that you do not have to worry about the bill payments as long as there is money in your account. If you do not have the automatic payment concept, you may find that you keep on piling your credit card bills and soon the bill payment may be past its due date. The due date which is mentioned in your credit card bill is not the deadline for sending the money but it is the final date for the merchant for receiving the money. Always remember that late payments on your credit card bills is a big mistake and you will be asked to pay a late payment fee and such late payments are also recorded in your credit report. Also, you will not be able to get a good rate on your loans and will have to bear the worst rate that the lending company can offer. Always make sure that you avoid the situation of late payments and it would be wise to send out your payments well in advance.

Going in for Rewards

Never go in for a higher interest credit card just because you get to retain some loyalty points in the bargain or get to accumulate some flight miles in the process. Also, never go in for a credit card that is offering you a cash reward because you are more likely to pay up more in extra interest than what you will earn with the cash reward.

Collecting Cards

Many individuals like to collect credit cards from all the major companies and they might not even use the same for a long, long time. In the long run, they might find it difficult to track all the details about their cards such as the balances and interest rates.

Not Reading the Terms and Conditions

Whenever you are going for a credit card, make sure that you read the terms and conditions of your card properly before you sign up for it. Also, make sure that you keep your eye open for any kind of interest rate increase or for the extra fees that you may be charged in the process.

Categories: Credit Cards

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January 2, 2014 Some of the top Credit Card Mistakes