7 Credit Card Mistakes You’re Making and How you can Fix Them. Credit card mistakes are common only to those who aren’t aware.
However, new credit card users make a mistake by using them.
Here we are going to tell you about seven mistakes that should be avoided in any case.
If you use a credit card or are thinking about using it, then this news is for you.
During the use of credit card, you should always keep distance from some mistakes, which are these mistakes.
We are going to tell you this in this report.
Talking about the last few years, credit card usage has increased during this period.
However, the new credit card users, during their use, usually make some such mistakes, which should be avoided.
We are going to talk about seven such mistakes, which should always be avoided.
Mistake # 1: Sharing Card Details : Credit Card Mistakes
The biggest Credit Card Mistakes is sharing the card details with anyone.
Often, the thugs get this information out of you by telling the representative of the card company.
Banks and credit card companies never ask you to give such details.
If anyone asks to do so, it is definitely a fraudster.
Attention should be paid to using the card at merchant outlets, especially petrol pumps.
There is a possibility of skimming (copying) your card here.
This card can be misused. Loophole: Do not give credit card PIN and other details to anyone.
If you do not see the EDC machine, do not give the card.
Mistake # 2: Omission to pay on time : Credit Card Mistakes
Credit card companies do not like those who do not pay on time.
They keep reminding them of the payment of the outstanding amount by sending email and SMS.
These alerts should not be ignored. There is a penalty and interest on the outstanding amount due to default in payment.
Worse is that purchases made next month are not interest-free.
Credit scores also suffer. This reduces the chances of taking a loan in the future.
Way of rescue: Instruct your bank that the card bill be paid on a fixed date every month.
If there is a shortage of money then at least minimum charges should be given so that penalty is not imposed.
Mistake # 3: Pay only the minimum dues : Credit Card Mistakes
Credit card companies want you to revive credit so that they earn sharp profits.
If you deposit only the minimum amount of arrears, 2-4% interest is charged on the unpaid amount.
It sits at 24-48 per cent annually. This is a very expensive loan.
The interest free period is not applicable in case of purchase if there is an outstanding on the card.
Loophole: Control expenses. Spend only what you can comfortably pay.
Mistake # 4: Cash Withdrawal Credit card companies allow you to withdraw money from ATM’s at very high cost.
Fixes are charged for any cash advance. Withdrawals are charged at 2-4 per cent per month.
Loophole: Since this is a very expensive option.
Therefore, cash withdrawal should be avoided from credit cards.
Many minor evacuations should also be avoided. This increases the fixed charge.
Mistake # 5: Use the full limit : Credit Card Mistakes
Credit cards give users freedom to spend. With the help of goods and services that were once inaccessible, they have now been reached.
However, if you use a large portion of the available credit card limit, then the credit score can be affected.
Loophole: Spend in budget. Keep 2-3 cards instead of one card so that the limit is not exhausted.
Mistake # 6: Using Rewards Points : Credit Card Mistakes
Card companies give you reward points on every purchase. With its help, she encourages you to spend.
It is not sensible to spend only to raise points. Nor should one wait long toraise points.
Reward points begin to lose their value as time passes.
Loophole: Spend as per budget and requirement. Cash out reward points in 1-2 years.
If the credit card company gives permission, then adjusts these points in the payment of the bill.
Mistake # 7: Repeatedly closing the card : Credit Card Mistakes
People often close their card account. However, this is not a sensible thing.
For example, if you have two cards, the limit is Rs. 50,000-50,000.
If you have spent Rs 30,000 a month, the credit utilization ratio will be 30 percent.
If you close a card, this ratio will jump to 60 percent. Higher credit utilization ratio is harmful to your credit score.
Rescue way: Keep them active even if you don’t use the card. Continue to increase the credit-free period by using 2-3 cards.
The first and greatest misstep is to share the subtleties of the credit card with somebody.
Ordinarily it happens that somebody swindles himself by saying that he is a worker of the card organization and gets all the data identified with your out.
With this you can get enveloped by large extortion.
One thing should be comprehended that never banks or credit card organizations request such subtleties from you.
On the off chance that you share the subtleties, at that point there is an expanded chance of replicating the card, this can prompt abuse of the card.
In such a circumstance, never share a credit card PIN or some other subtleties identified with it with anybody.
In the event that the EDC (card swipe machine) machine isn’t appearing, don’t give the card by any means.