What Are the Main Credit Card Mistakes?

Credit cards are considered to be an integral part of our financial life. Though they are very significant for people, many people simply don't understand cards' value. While some people can be responsible when using their plastics, others don't realize how many problems credit card deals can bring. If credit cards are used wisely, they can provide you with safety, convenience and benefits. However, there are dangerous mistakes that can cost you dearly. One of the most widespread mistakes is assuming that the first credit card company you have found will offer you the best rate you can obtain. It's wrong. Don't think that credit card companies are your friends. Relations with them are only business. They want to extract more money from you. And your aim is to avoid such situations. Before applying for a credit card, search for the best interest rate and options that will suit you best. And remember that companies can alter the rate at any time they want with a 16 day notice to you. While looking for a credit product of your dream you can make another mistake: to select a plastic for wrong reasons. For example, many people prefer a card with cash or travel rewards without taking interest rate or annual fee into consideration. Finally, people pay more in interest than the value of the benefits they get. Credit cards with various rewards can be the best option for those who pay their balances in full each month. If you can't afford this, it will be better for you to choose a plastic with no fee or low interest rate. In this case, you can save money in interest and put it aside for airline tickets or other things you want. When applying for a credit card, read the small print in your credit card agreement. If you don't, you make one more common mistake. By reading it, you will know your interest rate and how it can be calculated, the grace period and other terms. Moreover, from time to time you will receive notices of changes in the terms of your account from a credit card company. Be sure to read these notices as well. If you are not satisfied with your terms, search for a new creditor. One more mistake people often make is late payments. First of all, late payments are profitable for credit card companies, as they cause higher interest rates and fees. So, mail your payments 10 days in advance. More than that, some credit card issuers let you make online payments. There is one widespread mistake made by the majority of people. However, people don't realize that having too many cards is a mistake. Many people have a lot of plastic some of which they haven't used for several years. If you have plastics that you don't use, close them. Only imagine what can happen if you use all of your accessible credit. So, remember that credit is difficult to build but easy to destroy. Try to avoid mistakes that can damage your credit history somehow. Financial directory