Having a credit card does give you a lot of conveniences. Besides being able to buy goods or services that you desire, credit cards also provide many reward programs that you can use. However, it does not mean that using credit cards do not have any risks. There are several things that you should pay close attention to so that credit cards don’t backfire on your financial condition. Many people do not know the basic mistakes in using credit card so that they face financial problems because of the use of the credit cards.
Reporting from thebalance.com, here are 6 mistakes in using a credit card that you should avoid.
1. Late payment of bills
Do not let the deadline for payment of your credit card bills pass through just like that. Pay your bills on time, if necessary make reminders on your mobile. Because late payment of credit card bills will make you subject to fines. The amount of the fine depends on how long you are in arrears on the bill. In addition, late payments also affect your credit score and your level of compliance in the eyes of the bank.
2. Lend a credit card
When you lend your credit card to someone else, you cannot control the shopping that is done. In the end, you have to pay the bill. Therefore, never lend your credit card to someone else, unless you have prepared yourself to pay all the bills for the borrower’s expenditure.
3. Don’t read the bill
If you do not open and read the credit card billing statement, then you may forget to pay the bill according to the time specified. Furthermore, not reading a credit card billing statement canmake you miss important announcements regarding changes to terms and conditions.
Therefore, you have to always read your credit card bill. The goal is to make sure all bills are accurate and properly addressed to you.
4. Postpone the report when the credit card is lost
If you lose a credit card, you have to report immediately. The longer you report, then the thief has a great opportunity to abuse your credit card. If you report your credit card immediately, you will not be responsible for the bill. Report a lost credit card as soon as possible to limit your liability for fraudulent charges.
5. Submitting too many credit cards
Don’t submit too many credit card applications at any one time. If you do it, the application will often be rejected. The bank will begin to be suspicious because there are many applications for credit that come in a certain period of time. Therefore, submit a credit card application one by one according to your needs.
6. Don’t know the credit card terms and conditions
When you have a credit card, make sure you also know the terms and conditions well. For example, find out how credit card issuing banks handle late payments. Review credit card terms and conditions at least once or twice a year.
Read more: Don’t Use Your Credit Card for These Transactions!
