Credit Card for Beginners
Using a credit card is a haven for shopping lovers. You don’t need to have trouble carrying cash when shopping and just need to rely on a credit card. Credit cards are offered by the bank to facilitate its users, not only for ease of transaction but also provided with various kinds of offers and promotions.
6 Mistakes of Using a Credit Card
As a beginner, it does not rule out the possibility that a lack of experience in using a credit card leaves you in debt. To avoid this, here are 6 mistakes that are often done by beginners and how to handle them.
1. Using a Credit Card with No Responsibility
One of the mistakes often made by novice credit card owners is to use a credit card irresponsibly. The owner spends a credit card without thinking about returning the credit card debt.
Though shopping using a credit card means that you are owed to the bank and use bank money to buy the item. Not being responsible with a credit card will only damage your credit quality in the eyes of the bank and you will have difficulty applying for other credit.
2. Leave a portion of the bills in the credit card balance
One of the convenience of credit card payments offered is to pay a portion usually with a minimum of 10%.
3. Always Think about Rewards and Promotions
As a credit card user, of course utilizing all promotions and offers provided by credit cards is a careful way. Every human being certainly wants to get something free. But too focused on rewards when using a credit card will only make your shopping style impulsive.
4. Have Too Many Credit Cards
The ease of the credit card application process makes people like to have more than one credit card, not to mention that the credit card can be used in different places with different promos. Application facilities are usually lured with direct prizes. But this will only tempt you to spend more money. Having a large credit card means increasing your shopping limit. Not to mention if you can’t pay bills from one of the credit cards, this will only get you stuck in debt. Therefore, the maximum credit card ownership is 3-5 cards, having more than 5 is considered unwise.
5. Late or Failed to Make Payment
Failure to pay credit cards in a timely manner, as dangerous as the lack of payment. If you fail to pay on time, you will be given a high penalty penalty. This will only make you difficult to pay. What’s more, your credit score will be bad in the eyes of the bank and you will have a hard time finding a bank loan when needed. Always note the date of the credit card bill on your desk calendar or smartphone calendar. Arrangements are due 3 days earlier than they should. That way if you forget, you still have 3 days to pay.
6. Choosing a Debit Card to Avoid Fraud
Many people prefer debit cards for their transactions because they feel that debit cards provide security over fraud than credit cards. In fact, the bank will replace the loss of money both credit and debit cards. This means that the security provided for both types of cards is the same.
The above 6 errors can occur due to bad shopping behavior. If you want to avoid these mistakes, you should change your shopping style. The sooner you change your shopping style, the easier it will be for you to adapt to wiser shopping behavior.