Home Finance 7 Common Credit Card Mistakes People Make & Then Regret Later!

7 Common Credit Card Mistakes People Make & Then Regret Later!

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If you are holding with a credit card, then you owe it to yourself to use it the right way. If you are using credit card for the first time, then it is possible much that you do make certain kind of mistakes for sure. So here we are sharing some important and 7 common credit card mistakes which you should avoid for sure.

Making Minimum Payments

You should be making minimum only payments. It would not only increases the amount of time but it takes to pay off your credit card balance. It hence even increases the amount of interest you pay on top of your credit card. You should increasing your monthly credit card payment.

Making Late Payments

Secondly, paying late is another mistake. You should be paying with the minimum on your credit card that not only increases the amount of time it takes to pay off your credit card balance, but it also increases the amount of interest you pay on your credit card. You should not let your due date pass you by.

Loaning Credit Card to Someone Else

As you would loan with your credit card to someone else, you will not be having any control on the purchases they make. You will be accountable for paying the bills. You should never loan your credit card to some other person.

Not Checking Billing Statement

If you do not open with your credit card billing statement, you are at some risk in terms of missing your payment due date. You could also be in the condition as to miss important announcements about changes to your credit card terms. You should always read your billing statement.

Letting Credit Card Get Charged Off

You should be letting your credit card get charged-off. The listing will hence remain on your credit report for seven years. This could effect your ability to get credit cards and loans in the future.

Not Reporting Stolen Cards

Sixth mistake is all about waiting around to report your lost or stolen credit card. As much longer it will be taking you to report a lost or stolen credit card, the longer the thief has to charge up your account. If you report straight away your missing credit card before any fraudulent charges are made, you will be having no liability for the charges.

Always Maxing Out the Credit Card

Last is all about maxing out your credit card. You should be charging your credit card balance beyond 30% of your credit limit. This is dangerous to your credit score. You should be getting close to your credit limit as this puts you at risk for over-the-limit fees.

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