There are two kinds of people- those who think credit cards are a necessary component of a good credit history, and those who warn others to stay away from them. Most people fall in between these two extremes- we use them a lot, but there are things that we’ve charged and we wish that we [...]
There are two kinds of people- those who think credit cards are a necessary component of a good credit history, and those who warn others to stay away from them. Most people fall in between these two extremes- we use them a lot, but there are things that we’ve charged and we wish that we could go back and do it differently. This article will list some of the most common mistakes that new cardholders make, and you’ll learn how to pay off credit card debt.
-Too much of a good thing. Yes, credit usage can raise your score, and the more you have, the higher your score will be. However, if you have more than three or four, you’re setting yourself up for failure. If you apply for multiple cards at one time, lenders may think that you’re getting ready to go on a crazy shopping spree. This makes you look more risky than you actually may be, and it can keep you from getting approved for loans and other forms of credit. Stick to one or two main cards and that’s it.
-Those ultra-low introductory interest rates. Gone are the days when you could open your mailbox and find several “preapproved”, or “zero interest” credit card offers, but cards are still offered with low teaser rates. Make sure you read the terms and conditions before you sign.
-Late payments. Sometimes they are unavoidable, but if you’re late all the time or you’re more than a month behind, it will show on your credit report. You’ll get socked with late fees and penalty interset rates (almost reaching thirty percent!). If you think you’re going to have to pay late, let your lender know.
-Spending wildly. Many people mistakenly think of credit cards as free money. Even if you spend responsibly, it’s still easy to end up not paying the balance each month. From there, it’s also easy to max out your card and end up with even more fees.
-Not reading your statement. If you just pay your bill every month without looking at the statement, you could be spending money that you don’t have to. Scammers often work by making small purchases on victims’ credit cards, in the hopes that they wouldn’t notice. Just to be safe, look over your statement to make sure you’re getting charged fairly.
Get the credit card debt advocacy you need at creditcarddebt.org today!
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