10 Biggest Credit Card Mistakes

10 Biggest Credit Card Mistakes

10 Biggest Credit Card Mistakes

Using a credit card is easy, one swipe and you have purchased your entire month’s grocery. However, managing a credit card is no easy business.

 

There at least ten (10) big credit card mistakes that we all make, at least once in our lifetime:

 

1. Applying for too many credit cards, all at the same time.

It is wise to remember that each time you apply for a credit card, it knocks off a few points from your credit score. If you apply for several credit cards at once, chances are that you might experience denials very frequently.

2. Not understanding your credit card terms

Signing up for a credit card isn’t like signing up for an account on Facebook while ignoring their terms (that too shouldn’t be done).

It is a huge mistake on your end, signing up for a credit card, without having any understanding of the limits and how the company handles late payments. It is advised that you review the terms of your credit card at least once every six months.

3. Ignoring your bank statement

Not taking note of your billing statements is a mistake that can take a toll on your wallet.

By not opening and reviewing your statements, you are at risk of missing the payment due date.

You could also miss out on important notices such as a change in your credit card terms and may miss on a chance to catch any fraudulent activity.

4. Making minimum payments

Minimum payments mean that you are barely paying enough to maintain your lifestyle. It also means that it will take you a very long time paying off your balance and will pay an increased amount of interest on your credit card.

5. Paying late or not paying at all

What’s worse than paying the minimum? Not paying at all.

Not only does this mean that you will be paying more interest, it also means that you are risking away your credit score.

6. Loaning your CC

Loaning money is one thing, but loaning your credit card to someone means that you have absolutely no control over the purchase they make.

7. Exceeding your limits/Maxing out your credit card

By maxing out your credit card, and in fact exceeding your limits, you are subject to over the limit fees, increased interests and are at a risk of greatly hurting your credit score.

8. Having multiple cards

A wallet full of cards is like having a sack filled with debt. It is extremely difficult to manage multiple cards and deadlines become very easy to miss.

9. Not keeping track of your spending habits

With a credit card in your wallet, it is very easy to go around purchasing things that you might not need. Watch your spending habits and remember to never go overboard with shopping.

10. Lastly, closing out a credit card

You must always remember that each time you cancel a credit card, it does more harm than good to your credit score.

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