5 Universal Credit Card Mistakes

Most of the time, credit cards can be hugely beneficial, as long as you understand and follow some cardinal rules, while avoiding making crucial mistakes.

Many people hesitate to use credit cards because they fear ending up in debt. This can  happen, but most of the time, credit cards can be hugely beneficial, as long as you understand and follow some cardinal rules, while avoiding making crucial mistakes.

Here is the list of 5 credit card mistakes almost everyone makes

Mistake #1: Not analysing your credit report

Personal credit reports are like report cards to banks. It is your responsibility to check the accuracy of your report. Check your report regularly for any unexpected debts or false debts in your report. Inaccuracy of your report may reflect badly on you as a debtor (and wrongly so!). Click here to find out more about obtaining your credit report from the credit bureau.

Mistake # 2: Neglecting to track your credit card expenses

So you have a new credit card. First stop: spend spend spend! But wait…forgetting what you have spent on may turn out to be a very big mistake. Close tracking of each expense is needed if you want to avoid interest charges and accumulating debt. So, keep track of your every transaction and make sure they are within your means.

Mistake # 3: Overlooking the balance transfer cutoff dates

It is possible to transfer your credit card balance over to your new card in return for lower interest charges (for a limited time). The favourable interest rates are only offered for a limited time, after which interest and other charges may revert to higher rates. Be aware of your cutoff date and clear off all outstanding balances before then.

Mistake # 4: Not reconciling your credit card records

If you are neglecting your credit card expenses (mistake #2), it is likely that you are not properly reconciling your credit card records either. Reconciliation of credit card records can help you to detect errant charges, fraudulent transactions and protect you from paying more than you rightfully should.

Mistake #5: Failing to monitor and update automatic payment methods

It is easy to set up a credit card to make automated payments for bills. But, what happens when your credit card expires, or is cancelled? If care is not taken, many bills could be left unpaid, which can affect your credit reputation or result in interrupted services. Be sure to monitor and update your automatic payment methods to use only active credit cards.

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