If you own a credit card then it is your responsibility to use it in a right way. Improper use of credit card can cost you a lot of money over the long run. You can also lose your previous credit points as well with the result being a much lower credit score, which can cost you tens of thousands of dollars over the span of your lifetime. Below we mention some of the worst credit card mistakes. Try to avoid them as far as possible and you can hopefully keep your credit report and credit score in good shape.
- Never make minimum payments: You shall never make minimum payments. You shall always pay the entire balance within the due date. Paying minimum amount will add the interest rates on your balance amount. If you pay the entire amount, you can save a lot of money.
- Never pay late: Always pay the amount before the due date. Paying after the due date may attract a penalty. High monthly interest rates will be applicable on your remaining balance. Always pay the bill in time to have control on your expenditure.
- Loaning your credit card: Never give your credit card to anyone. You will have no control over the purchases. The person whom you borrow may not help you in the end. You will be liable for the misuse of the card and will have to bear the cost.
- Never ignore your credit card statement: It is your responsibility to read your credit card statement. If you do not read your credit card statement, you will never come to know the due date. You can be fined in case of any such incident.
- Avoid credit charge-off: You shall always avoid a charge-off on your credit card. Having a charge off can forfeit any existing credit card score. You will not be allowed to get credit card loans for as long as seven years. You can also be penalized for it.
- Always report a loss of card immediately: you shall always report a loss of card immediately. Always remember that your credit card can be misused by the thief. You will be held liable if you do not complain regarding your credit card.
- Maximum number of credit cards: You shall use only one card. Having many credit cards can put you in trouble. Your expenditure will be high, as you will have a higher credit limit. You may find it harder to stop yourself from buying. Therefore, you shall have only one credit card for your primary use.
- Never take haste decisions: You shall never close your credit card your credit card out of anger. It will be dangerous for your credit scores. The bank automatically forfeits your credit card score once you stop the subscription of your credit card.
- You shall never give more credit card application: it is never a good sign to lose credit score. However, if you apply for credit cards often it will ruin your credit card score.
- Always know your credit card terms: You shall always know the terns and condition of your credit card. You shall read the credit card disclosures very carefully.
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