Sure, not everyone is perfect, we all make mistakes, but there is a difference when it comes to your finances, you want to make sure you’re making all of the right money moves so you can ensure that you are maximizing what you have saved, while minimizing expenses. So you don’t get to a point where you need plain green loans, it’s good to make sure you’re on top of your Credit card usage and be sure to avoid any possible mistakes.
Not Checking Credit Report
First off, you never when someone else has your info these days, whether it’s getting your card stolen, or having a hack within a store that sends all of its customers in the wrong hands, either way you want to make sure everything on your Credit Report is accurate. Not only is making sure no accounts are opened in your name, but keeping up on your credit report can continue to build up your credit score which allows you to take advantage of the best interest rates on the market so you can ensure your monthly payments are the lowest they can be.
Selecting the Wrong Card to Use
If you took the time to count up how many credit cards offers you receive in the mail instead of sending them straight to the trash, you’re probably looking at a dozen a week, and the cards are of various brands, interest rates, and buzzwords such as black or platinum to try and give the perception they are part of an elite club. The truth is, you really should only worry about a few things, the lowest interest rates possible, preferably no annual fee, and the most rewards you can get for making the normal purchases you would be making anyways.
Only Making the Minimum Payment
Credit cards are great for giving a little grace period to pay back, but that due date can come up pretty quick and if you haven’t kept spending until control you can now look to interest being charged, and depending on the percent and balance on the card, could start to really cost you. You will receive a statement showing a minimum payment needed to satisfy the account for the month, but only paying that minimum will still keep your balance out there, as just about all of the payment will go towards interest and very little towards the balance.
Not Leaving Accounts Open
One of the biggest credit card myths out there is closing your credit account once you hit zero balance and no longer want to use the card anymore. While it’s a huge accomplishment to have paid off this debt, you are doing yourself a disservice by closing the account, as you are now taking that available credit away from you and you could actually lower your credit score. If you want to avoid using the card and stay away from going on a spending spree just cut up the card, but keep the account, and available credit, open.