Mistakes Credit Card Holders should Steer clear from
Credit cards are very important assets. 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. Low-income families could use these same tools to lighten their financial burden. Using them inappropriately can cause you serious trouble. Avoid these common mistakes and stay safe.
Opening many credit card accounts is suicidal and should be avoided. Please avoid it. It’s a nasty and awful thing to do. Here is why you should not: It’s easy to lose track of your spending. Your credit card score could be dented. It will be hard to take advantage of available rewards. Give yourself some good time before you could handle another credit card.
Not paying the balance every month is a wrong route to take. Credit cards are a form of revolving credit and therefore you should 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. Such habits have denied many people from being rewarded. All your profits could be nullified as well.
Lack of credit card usage has led to accounts closure. They think that if they’re not using their cards, the best thing to do is to close them. It’s totally wrong according to credit card experts. If you had debts and paid them off, do not close your account, simply keep them safely. Therefore feeling it’s not important to keep your account. 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.
Cash advances decision: This is not a right decision to make. Sooner or later you will be visiting WireLend to take out a loan to pay 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. It doesn’t end there, you will also be required to pay a host of fees while interest begins accruing immediately.
The last point here may sound crazy. Actually it is ridiculous. Free money is seen thrown away by most new credit card users. Not taking full 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.