We continue our article titled the 10 biggest mistakes made using credit cards from the sixth error item. You can find the first five mistakes here.
6. To cause the card to be closed
The credit card, which has been closed due to unpaid debts, will affect your credit life for a long time. When you fail to pay your credit card debt, banks will allow you 1 or 2 months according to their policy. During this process, you are constantly warned that you owe.
If you have not yet paid, you will be notified and will still be given a period of time to pay. If you do not pay within this period, your credit card account will be confiscated and a troublesome process will begin. This will cause your card to be closed and will adversely affect the appearance of your credit history.
7. Use credit cards for rewards
Rewards for shopping enthusiasts create extra excitement. Even for the award to be obtained in exchange for shopping, unnecessary purchases can be made. This will adversely affect your budget and your credit card, which you have trouble paying your debts, will also negatively affect your credit rating. If a bank gives you execution, you will have a very difficult time.
As a conscious consumer, it is necessary to make purchases that do not exceed your height and to balance the need and desire distinction. There is no need for such a debt for prizes that seem to be a very attractive opportunity. You should avoid this passion and spend according to your needs by making a personal finance plan.
8. Not checking the account regularly
How many credit card users regularly check their account and have information about interest rates and transaction fees? This number is known to be quite low. When the credit card statement arrives, it is necessary to look at the expenses and make the necessary separation. You should also follow the interest rates applied after your installment purchases. In this way, you should set the budget and keep track of your expenses. You should follow the transactions realized in your account, and you should definitely examine the transaction fees and interests.
9. Use a card to look rich
This thought may seem quite absurd to you. But a lot of people use credit cards for that. There are people trying to make themselves rich by carrying a high-limit card that exceeds their payout. This is, of course, entirely at its own expense, and the only person he’s fooled is himself. It is another fact that this mistake is made frequently sık
The status of wealth on credit cards cannot be measured with limits. The status symbol on the cards is platium, titanium and gold. These special cards are given according to certain features and have different usage fees compared to other cards.
10. Not to use the active card
You may have an active credit card and may not want to use it. If you have such a credit card, it is best to close it. Cards that are active may also adversely affect your credit rating. Because unused credit cards are seen inactive after some time.
This may also cause banks and companies to consider the existence of a negative situation. If you do not use the credit card identified in your name to avoid this, it is therefore best to have it turned off.
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