Mistakes Credit Card Holders should Steer clear from
Having a credit card is very useful. When used properly, credit cards could enable you to travel the world free of charge. Making a lot of money using credit cards or using them as cash back provider has been an experts’ trend. 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.
Never open many credit card accounts. Please do not. It’s a nasty and awful thing to do. Here is why you should not: It’s hard to track 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. 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. Rewards are never allocated to people who possess such habits. There is also a risk of all your profits being nullified.
Lack of credit card usage has led to accounts closure. Closing their accounts down due to lack of activities in them appears to be the finest decision to make. 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. 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.
Taking out cash advances: This is not a good thing to do. 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 common mistake here may sound wacky. Actually it is ridiculous. Most new credit card users usually throw away free money. 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 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. Use your credit card properly and discover how you could benefit abundantly.
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