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Typical Mistakes in Using Credit Cards

Using credit cards is like owning the whole world. Imagine your capability to buy everything your heart desires in just a swipe of that shiny plastic card. Then comes the bill and all you want to do is scream because you know there is no way you can pay all the bills on your five credit cards. This is so typical and the reason- typical mistakes that credit card owners commit.

Let us take a look at some of these common mistakes.

1. You travel around the world and you have your international credit card with you. You use it without asking if there will be a foreign transaction charge.

2. You are in a different country and one of the merchants told you that charges will be converted into dollars. To avoid such mistakes, always remember to remind each merchant that you are paying using your card in their local currency.

3. Another mistake credit card owners often make is being too trustful. They travel abroad without telling their banks until the card gets suspended for suspicious usages.

4. Do not use your credit cards to the max. Everytime you hit your credit limit o you just purchase something using it like a car or housing loan, your credit card gets a hit. Make sure to do big things using your card at least six months since the last activity.

5. Purchasing your card without any credit. Avoid using your card to full extent of credit you are allowed to. Credit standing gets affected as well when credit limit is reached. This also falls to the fact that you should only use what you can pay for. If you reached your credit limit, what is the assurance that you can pay it at the end of the month? And in case of emergencies, is there anything else left for you to use?

6. Paying after due date or paying the less amount required for the month. This is one common mistake credit card owners are making. Banks doesn’t care whether you pay less than the minimum or didn’t pay at all- it still reflects as not paying. This will in turn cause more interest and charges on your credit card.

7. Ignoring credit card perks. This is one of the positive things that banks are offering consumers. Perks and rewards. However, these things go unnoticed since most credit card holders are more focus on their wants. Among the common perks offered by banks includes discounts on specific restaurants and stores, warranties and purchase protection.

There are more mistakes that credit card owners are making causing their credit charges to go higher and their credit background to get worst. It is best then to check the pros and cons first before deciding to get additional credit card in your name or even before applying for one.

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