Credit Card Mistakes You Should Never Make

Most people are responsible when it comes to how they use their credit cards, but for others, it’s like playing with fire. Unfortunately, these people don’t realize how much trouble this can bring and they make all kinds of dangerous mistakes with their credit cards every day.

Paying After The Due Date

If you haven’t set up an automatic payment system with your bank, then it’s easy to put your credit card bills in a pile that you get to whenever you have time. Unfortunately, before you realize it, a few weeks have gone by and you’re now late. If you leave making your payment until the deadline, you might find the payment won’t get there quick enough, especially if you pay by sending a cheque through the mail. You must realize that the due date isn’t the date for sending the money, it’s a deadline for when credit card company should receive the payment.

Making your payments after the due date is a serious mistake for a number of reason, the least of which is the late payment fee and extra interest you’ll be charge. Your late payment will also go on your credit report for everyone who checks your credit in the future to see. This may lead to you losing the lowest rate and your debt being put into the very worst rate the company offers.

So try to avoid late payments be posting your payment at least a week before the due date. However, considering the unreliability of the mail service, that may not even be enough. If your bank allows you to make payments online through your account, then try to do it this way because the bank is often more reliable at getting your payments through than the postal service. In fact, in this day and age with online banking, you can even arrange to have the minimum balance paid on all your credit cards automatically every month. This is a great way to ensure your payments are made on time if you’re someone who tends to pile your bills in the corner somewhere and forget about them.

Being Fooled by Rewards

Never, ever get a higher-interest credit card simply because they offer loyalty points, flight miles or whatever. Even if they offer a cash reward, it’s not likely it will be more than you’d pay in extra interest. Let’s face it, why would a credit card company give you free money? All these so-called rewards’ do is pay you off with your own money to make you think you’re getting something for nothing. Believe me when I tell you you’re not.

Collecting as Many Cards as You Can Get

Some people will open their wallet or bag and proudly show off their hundred or so credit cards, some of which they haven’t used in years. The problem with having so many cards is keeping track of all their balances and interest rates. It’s not wise to be one of these people.

Try to limit yourself to a maximum of three cards at a time any more and it will make you look over-committed in your credit report, and it may even get you turned down for a bigger loan.

Maxing Out Your Credit Card Limit

Your credit card limit is just that a limit and not a minimum! Whatever you do, try to avoid getting a card and then immediately spending right to your limit. This looks bad. It’s much better to spend about halfway regularly and then pay it back. To get that increase in your limit, try to wait for the company to increase it (which they certainly will), and then you’ll get that extra money without the stigma of having a maxed-out card.

Failing To Read the Terms and Conditions

Finally, don’t ever sign anything you haven’t read! I know this is hard going and you’re busy and reading all that find print is difficult, but if you can’t get around to reading the terms and conditions then you shouldn’t get the card. Always pay careful attention to what future increases in rates you can expect and especially the type of fees you can be charged.

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Glenn Cutforth is a writer, eBook publisher and graphic designer.

For more information on Credit and Debt, go to his website at:

HowToClassics.com/Guide-To-Credit-Repair

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