Credit Card Mistakes to Avoid
Credit cards are very important assets. When used accordingly, you could 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. Using them inappropriately can cause you serious trouble. Here are some of the common mistakes that you should avoid by all means.
Avoid opening multiple credit card accounts. Please don’t. It’s a nasty and awful thing to do. Here is why you should not: You lose track of your spending. Your credit score could easily be affected. You will not get rewards. Wait until six months before you could handle another credit card.
It is not a good practice not paying the balance every month. Credit cards are a form of revolving credit and therefore you should pay your balance in full every billing cycle. The charges you’ve accumulated are carried forward to the next billing cycle any time you fail to pay your balance. Your balance can only be rolled over after an interest is charged on the balance. Such habits have denied many people from being rewarded. All your profits could be nullified as well.
Many credit card holders are tempted to close down their accounts. They think that if they’re not using their cards, the best thing to do is to close them. Credit card experts do not support such decisions at all. Closing cards as you pay off your previous debts is not advised at all, just store them safely. Do not feel that your account has lost any value. Such actions will only affect your credit score negatively. The worst happens when you decide to open a new account to replace the previous one.
Going for cash advances: This is a total wrong decision to make. You will have no other option than visit a WireLend to take out a loan to off your cards. Cash advances will do you more harm than good since there is an interested rate of several points higher than your APR carried by them. That’s not all, you will be subject to a host of fees and interests will begin accruing immediately.
The last point here may sound crazy. Of course it is. Throwing away free money is one of the biggest mistakes done by most new credit card users. Ignoring all the advantage of services that most credit card companies offer. Since most credit card companies offer a free Vantage score, try to follow the directions given to obtain such bonuses.
Final thoughts. According to credit card experts, all new persons to the game should play it slow and smart. Newbies should stay away from cards with annual fees. Anybody who uses their credit card properly will discover the many benefits that come along.
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