Credit Card Mistakes to Avoid

Credit cards, the one thing which you think of when you are in debt. It is one of the viable options which come handy when you are in trouble. The usage of this valuable money lies in how well you use it to your advantage. Let us focus on some of the common mistakes which people tend to make when they are using it. Being aware of the pitfalls of this convenience card will help you tread carefully and avoid the oft committed mistakes.

Read the T &Cs carefully:

Never take a credit card without reading all the clauses, which could become a costly affair later. Most of the banks which lend you money charge a flat fee for using it as a hard cash with huge interest rates which can worsen your existing condition. Do not jump the gun without knowing the exact meaning of the clause. If there are too many jargons in the clauses, be bold enough to ask and get a convincing answer from the technical expert.

Expense Management:

Manage your expenses and spend judiciously. Have a budget planner which eases your job of prioritizing when you have too many commitments.

 

Be aware of fraudulent cases and ensure that you don’t be a victim. There is always the possibility that a mistake has happened knowingly or unknowingly.

Ensure that you don’t give your credit card to even someone whom you know which could be a recipe for disaster. Once your credit card is used by someone it is nearly impossible to track the criminal. Do not let others know your credit card number which can be misused. Be good enough to lend money to someone in cash, but not fool enough to give your credit card to use it as cash.

 

Do not go by advertisements and clever marketing. Some market research on which card best suits your needs is required. Manage to read and understand all the clauses which are written at the bottom of the clause sheet which does a huge difference later.

 

Make sure that you don’t pay interest on your credit card. Limit your spending within the bounds of your reach. Keep an account of how much you can spend every month.

Spend Wisely:

Do not use your credit card as your loyalty card. If you use it purely for the purpose of reward points you will end up paying exponential interest rates which again is a huge loss.

Check your Bill:

Keep a track of your transactions. Verify this with the bank statement that you get on request from the bank. If you feel there are any differences make sure that get it clarified then and there.