Using a credit card needs a huge amount of discipline and to give up the impulsive buying requirements. A small credit card mistake can have dangerous consequences.
Cardholders often make mistakes while using their credit card and have to pay a heavy fee, interest rate, and find themselves mired in financial trouble. Here, we enlist a few of the common credit card mistakes that you can relate with and that can be avoided to get relief from fiscal issues. Here the <strong>reasons why credit cards are bad?</strong>
Overusing the Credit Card
2014, Accenture survey found that most people make a budget holiday for gift buying and nearly half go right ahead and spend more money. Overspending is the most common mistake committed by credit card holders thinking of their credit limit is equal to financial needs. They do not even realize the consequences of giving themselves to impulsive buying habits and end up with huge credit card bill to pay at the end of the month along with the rate of interest.
From today onward, setting your budget in a way to make purchases for necessary things only and forget about your credit card lying pocket for a month or two.
Getting too many of it
The common financial blunder made by credit card holders is to have plenty of cards in their wallet without even realizing what they would do with multiple cards. <strong>Remember, a credit card is a useful fiscal resource to take out money for personal needs but the money has to be repaid within interest.</strong> Having multiple credit cards of different banks is a mistake as your financial condition does not allow you to pay for such cards at one go.
Not Giving Yourself to Read Terms and Conditions Carefully
Blindly signing the terms and conditions of credit card acceptance is a silly but common mistake that the majority of people commit. Quite often signing with the unreadable terms of the card, you do not have the idea of an annual fee, interest, and other charges. Avoid this mistake by carefully reading the terms and conditions by sparing time from your busy schedule.
Making Minimum Payment
A common credit card mistake that people make is to make repayment of the loan in small parts. Although, credit card companies have provided you the convenience of paying credit card bill in small portion rather than paying at one go. But this is a mistake on your part to make credit card repayment installment small that will make you pay more interest rate at the end of the month.
Paying the Bill Late
Late payment of credit card bill is another wrong act made by the person which is even worse than making no repayment. This is the cardinal sin committed by the people to make repayment of loan late. As a result of the consequences, you have to pay late payment charges plus the credit report is also at stake.
Withdrawing Cash Frequently
Using a credit card for withdrawing cash is one of the common mistakes that can be avoided. Frequent removal of cash as per credit limit means to pay more interest rate every month.
Not Checking Credit Card Statement
Not looking at the monthly credit card statement makes you keep uninformed about the current financial status and pending payments.
Credit cards create a huge stack of debts which is very difficult to pay back. On another hand, faxless payday loans are designed to save you from the unwanted trap of debts. When a cash emergency striking and you have a poor credit score, it may seem like you don’t have another option. But choosing a faxless payday loans no credit check, not only help you to sort out your bills but also assist without hurting your credit score badly. These are the reasons why people looking for payday loans near me on Google.ca.
Melanie Hope has been working tirelessly to write some more interesting and informative articles mainly related to money management, credit debts and saving money tips. She love her job and do it from anywhere and anytime when an inspiring topic striking her mind. Melanie earn her degree in Economics and Finance and then starting career as a professional writer.