10 Common Credit Card Mistakes

In no peculiar order, the following are viewed as being the top 10 common credit card mistakes:

1. Applying for a card and bounds you cannot afford to repay

Most people have got got bad debt management accomplishments and are swept away with the fact that they have ‘x’ amount of lbs as their limit. They rarely see paying the card and have got “maxed” the card out in a few months. They then pass old age trying to refund the card!

2. Applying for too many cards

Not contented with having one credit card that have reached its limit, most of us leap at the opportunity to apply for a new card as soon as it is offered to us. Then, having learnt nil from our former experience, we hotfoot and purchase all the things we couldn’t because we had to salvage money to refund the first card. Suddenly we have got twice the trouble!

3. Using the cash advance function

At least with purchases made for commodity and services we should get around 50 years interest free credit, but with a cash advance we begin to pay interest from Day 1. Using your credit card to cover your day-to-day cash needs is a very costly mistake!

4. Only paying the minimum repayment

Credit card companies love us and it have got to be their favourite of the common credit card mistakes, but with credit card interest rates as high as they are, if you are only making the minimum monthly repayment then you should cognize it’ll take you old age to refund the debt and you’ll have repaid the debt many modern times over in interest payments!

5. Maxing out the card

Another common error and one that one-half the country is at fault of is maxing the card out. If you have got got maxed your credit card out it’s A certain mark that you are living beyond your means, so what trust have you got of repaying the debt without a extremist inspection and repair of your debt management skills!

6. Late payments

Late payments subject you to extortionate interest rates and set fees, very profitable for the credit card company and a very unfortunate error for you to be making!

7. Not checking your statement

A common mistake when we begin to experience the pressure level of a debt load is to begin to disregard the fact that the debt bes in the first place. If this happens, the opportunities are the fees and charges will begin to accrue and the adjacent thing you cognize you are not making the minimum repayments. Suddenly you are the topic of more than fees and charges. And so the rhythm travels on!

8. Adding a secondary user

Although some may not see this a mistake, if you add a secondary user to your credit card account you’ve suddenly lost control over the disbursement on your card – no matter who the individual is. Now measures can rack up on your account without your normal controlling self, as they are being transacted by a 3rd political party (who you authorise). A credit card company’s dream.

9. Using your card overseas

For every overseas purchase you do you could be subject to fee and a icky exchange rate. So, even if you are the perfect credit card client and pay your measure in full and on time, suddenly the card issuer is making money out of you!

10. Not reading the credit card agreement

In your hastiness to get a credit card you have got not read the terms and statuses of the understanding and so you are not aware that if you move in a certain manner or make something you should not, then you are likely to be paying for it. But the existent ground why this is on of the common credit card errors that issuers love to see is because if you don’t read the understanding carefully they can charge you for additionals you may have got been able to choose out of – such as as credit card insurance (a large earner for card issuers!).