Using the credit card correctly is very difficult, especially for people with a passion for shopping. We all know that, at least we can guess. However, if it is used correctly, it can turn into torture when it is used incorrectly while providing an advantage. Because he can drag you into debt before you even know what happened.
Credit card users often find an excuse to trick themselves and make irresponsible purchases. The excuses found make sense at first, but after a while they realize what a big mistake they have made. Now let’s list the 10 biggest mistakes made in using credit cards.
1. Not to read the credit card agreement
When you apply for a credit card, do you read the contract terms? Let’s face it, many of us don’t read those long and obscure writings. Because our aim is to get the card as soon as possible and see what we need. After a while we encounter any problems immediately begin to complain to the bank. The answer of the banker is very clear. We are told that all of these are written in the credit card agreement. If you are considering buying a credit card, be sure to check the articles written in the agreement. If there are points you do not understand, consult the bank’s customer representative and ask for information.
2. Not paying on time
When we spend the credit card irresponsibly and well above our income, we start having payment problems. In addition, if we do not have money on the account cut-off date, we will delay payment. When the delayed payment is made, the interest amount is always on the agenda. We may not see this interest at first, but after a while we see how much we pay extra when we see the total interest amount.
It is important to pay credit card debt on time. This problem, which will adversely affect your credit rating, will grow more and more. Therefore, it is necessary to keep track of the payment date and amount of the credit card. To pay the credit card debt on the day of payment must be reserved money.
3. Pay only the minimum amount
The minimum amount payments, which at first glance seem to be an advantage, actually means the beginning of a process to be paid later on the installed interests. If you think yeter I will pay the minimum ”you will make a big mistake. Not only that, you become the banks’ favorite customer. This is because banks apply the highest interest rates on minimum payments. This causes the debt to increase exponentially with each passing day.
In order to become a conscious credit card user, the total period debt must be paid. To achieve this, you will have to shop as much as the total amount you can pay monthly. If your payment exceeds your income, you have already made a mistake from the beginning.
4. Expenditure to increase credit score
It is not right to use the credit card just to increase the credit score… When trying to increase your credit rating, you may cause it to fall further due to payments exceeding your height. Many banks may offer you this, but if you have a passion for shopping that you cannot stop, the situation may turn. Therefore, when using your credit card, you must first borrow the amount you can pay. If you borrow more, you will have payment difficulties and can further lower your credit score.
5. Cash advance
Cash advance withdrawal, which appears to be a good advantage offered by credit cards, can also cause major problems. Persons with cash shortages are under great responsibility by using the money defined on their credit cards. In fact, this process simply has the same characteristics as credit withdrawals. It is said that you can pay in advance in cash and installments, and that makes you very happy that you are suffering from cash shortage. But when you hear the interest rates applied for this, you will see that this problem will worsen.
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