Have you ever gotten complicated with your card or joined the credit card delinquent list? Many people who cannot pay the bill and get into debt may be making one of these 10 common mistakes when using their credit card. See how to avoid!
1- Pay the card minimum
When you pay the minimum amount, you are paying more in fees than you actually borrowed. What you will pay is twice as much for everything you buy, financing the full and real value of your invoice. Therefore, never pay the minimum of the invoice!
2- Lose invoice due date
All account arrears generate interest rate charges that can disrupt your financial health. If you pay a few days late you will pay interest, but if you pay 30 days or more late, depending on the amount of your invoice, your debt may turn into a snowball.
3- Overcard limit overflow
This is the most common and the one that causes the credit card owner the most trouble. The consumer ends up getting excited and buying everything he sees ahead. One option is to split your spending between credit and debit cards and not exceed 30% of your card limit value.
4- Withdraw With Credit Card
Have you ever fallen into this trap? It is very common! At a time when you are in need of money you resort to credit card withdrawal. The problem is that the cards charge withdrawal interest, IOF, tariff, which makes about 20% of the amount drawn.
5- Accept loss or theft insurance
Credit card companies are already required to cover card loss or theft, so you do not need to pay for this service. Please inquire with your card company and request cancellation of service if this is the case.
6- Do not track credit card statements
Aren’t you in the habit of tracking credit card statements? This is another very common mistake. You can track your spending directly over the internet or mobile apps so you can keep track of your spending.
7- Do not check invoice history
Credit card companies frequently make charges. And the worst is that many people pay the bill without checking all purchases. Check out each amount charged on your invoice!
If you can identify the error, please notify your card carrier immediately to avoid problems and get a refund later.
8- Have credit card when you have other debts
If you are in debt and want to pay these debts with your credit card, beware! Because credit card can be an easy way to get into other debt. For those in debt you need to rethink how to pay so as not to further damage your financial health.
9- Dismiss the duplicate
When you keep the duplicate card, you can get organized and avoid surprises when your bill arrives next month. When you don’t have an expense report, you can lose track of how much your account will be at the end of the month.
10- Loan the credit card
Have you ever lent your credit card to a relative or friend who borrowed? This can be very risky as nothing guarantees that you will get your loan repaid on time. Think carefully! After all, it is your name that is at stake!
Use your credit card responsibly and avoid headaches in the future! If you avoid these mistakes, you can turn your card into a great ally of your finances!
Want to know more interesting information for your finances? Be sure to check out the Low Interest tips on our site!