November 06, 2010

Some common credit card mistakes


Credit card is the safest and most convenient way for our daily financial transactions. If we keep it with us, we really don't need to bother about anything from bills to money. Only one card has made our life easy & smooth. But the fact is, even if you don't bother about your transactions, you must bother about your card. Whatever be your credit card type you might become a victim of your own credit card mistakes like other consumers. 

Mistakes make normal human beings smarter in the long run. But you can avoid those common credit card mistakes by being a little bit aware. Here are some common credit card mistakes people often do and how you can avoid them:
1. In case of a zero percent balance transfer credit card try to be assured enough about the fee of the credit card company. Most of the time they add a service charge of at least 3% to 5% of the amount transferred and the your actual cost is increased.
2. These zero percent rates are temporarily available, so before the offer expires, pay all your debts off.
3. If you're a shopaholic choose the type of credit card which fits your habit the most. Otherwise you'll have to pay excessively. 
4. According to the CARD Act, it's your legal right to request for a lowered interest rate after 6 months of your on-time payment ( if it has risen due to payment issues ).
5. Whatever be the situation, don't reveal your credit information to others.
6. Though the credit card company gives you the right under the CARD Act to exceed your credit limit, you must not tend to do so. If it's an emergency and you've nothing other than this to do, only then you should break the limit and not before that. Remember, exceeding your credit limit multiple time may penalize your transactions in future. 
7. Use a credit card payoff calculator and be sure that you'll be able to repay what you're spending. It would prevent you to spend beyond your limit.
8. One thing you must know that business credit cards are not protected by the CARD Act from arbitrary interest rate changes. So use personal credit cards instead of business cards for buying where you need to carry a balance. 
9. And at last I must suggest you to take professional help if you face any credit issues. Don't ignore them .

A good credit history is always useful for any investment. So make it today by being aware of your credit. As we all know, "Prevention is better than cure"....try to follow it.

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