Top Five Credit Card Mistakes

There are plenty of people in this world that make BIG mistakes with credit cards. Credit Cards are like fire. It is VERY important in life, but it can be dangerous at the same time. Don’t Make these five mistakes when dealing with credit cards.

The Late Payment

Paying late is a BIG MISTAKE:

• There will be a late payment fee
• Everyone will be able to see your late payment
• You may end up losing any good rate you had
• You may end up having the very worst rate the company offers!

You can AVOID IT by:

•  Make your payment at least a week before it’s due date. *Last Minute?* CALL YOUR COMPANY!
•  Set up any kind of automatic payment – Even if you pay the minimum it is better than missing your due date and paying more!

Getting Sucked Into the Great “Rewards”.

The rewards suck you in…to their HIGH-INTEREST CARDS!

• Loyalty points? – NO
• Flight miles? – NO
• Cash reward? – NO

This is one of those times were the risk is not worth the reward. Somtimes it’s better to “Just Say No”

Collecting Too Many Credit Cards

“Simplify, Simplify, Simplify” ~ Henry Thoreau

The key to an easy financial life is to literally simplify! You may not choose to want to simplify your life from iPods, T.V Specials, and great shopping deals. However, if you simplify the amount of credit cards you have you will make a big positive change in the way you deal with money.

Why?

Becuase too many cards make tracking you finances very difficult. There are simply too many: cards, balances, and interest rates!

You should limit yourself to a maximum of three cards at a time – any more starts to make you look over-committed in your credit report, and could get you turned down for a bigger loan.

Maxing Your Credit Cards Out

It’s called a credit card “limit” for a reason. IT IS NOT A MINIMUM!

• It looks bad to get a card and immediately spend your whole limit.
• Instead, spend about halfway regularly and pay it back.
• If you need a increase in your limit either wait for the company to increase your limit (which they quickly will), or ask for an increase! BUT NEVER MAX OUT YOUR CARD!

Not Reading the Terms and Conditions.

NEVER, NEVER,NEVER Sign anything you have not read.

If you can’t manage to read the terms and conditions then you shouldn’t get the card.

The credit card companies want you to join so bad that they have big prints for rewards, and small print for their agreements!

Pay special attention to any future increases in rates, and what kind of fees you can be charged.