Credit Card is probably one of the safest and most convenient method of making payments. But credit cards can also turn into a bane if not used properly. There are certain mistakes that people commit very often when it comes to credit cards.
- Hoarding Credit Cards-
This is probably the most common mistake so many of us are guilty of making. After initial apprehension with respect to plastic money, we go on a hunting spree and collect as many credit cards as we are eligible for. I have seen people flaunting their cards as trophies.
- Don’t get greedy for Rewards-
Often people keep on collecting cards from different banks because of rewards and discounts each one provides. But don’t forget nothing in this world comes for free and more often than not banks are the ones who are getting better deal out of every transaction you are making.
- Sticking to just minimum Payments-
Just because the banks offer you the option of making minimum payments on your credit card every month, it doesn’t mean that you have to. The outstanding amount will earn interest and this will be heavy on your pocket. Make sure you pay more than the minimum amount, if possible the whole debt if you have the resources for it.
- Missing Payments-
This is the cardinal sin as far as card payments go; in case you are doing this, be ready to face the consequences. Not only will you have to pay heavy late payment penalty, but your credit score will also decrease substantially. In fact it is this point which should raise the alarm and you should get your act together before you ruin your future borrowing scope completely.
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