Top 5 Credit Card Mistakes

If you have had a credit card for a while chances are you might have made one or several of these Credit Card Mistakes. If you are looking to get a credit card for the first time there are 5 Credit Card mistakes you will want to avoid to keep your money and your credit in good shape. When you’re working with credit cards, you’re messing with hot stuff. Too bad, there are lots of people out there who don’t figure that, and they make all sorts of bad mistakes with their credit cards every day. If your young and only need the credit card for emergency's when you have no cash, i suggest that you concider getting a prepaid debit card because owing money on a credit card can cost you money for several years to come. If you do need a credit card then I also suggest get a low credit line to star off with.

This article will dicuss the 5 major Credit Card Mistakes to help you with your credit card. If your new this will help you in deciding wheather to get a credit card or a prepaid debit card. A credit card is good if you avoid these 5 steps but with a prepaid debit card you can spend the money you have put into your card and that might be the better route for Master Card or Visa Card Users.

Paying Late vs Paying on Time

Pay late is a very big mistake for lots of reasons. You will get fees added on to your balance, you credit rating will get hurt and you will not know what the balance really is on your credit card. Now a days its not only a good idea to pay on time but paying a week early is even a better idea. The best way to make your payment is a automatic payment that way you will always know that you have taken care of this months payment. Remember the date the payment is due is the day they have to have your money. The credit card company does not care what date you mailed the payment, they only care what day it was posed to your account. That's why I suggest you send your payment a 10 days early or a week early if it an automatic payment.

If your are late you will find your self paying higher rates in the future and its a lot easier to get a bad interest rate then it is to lower your interest rate. If you mail your payment in and do not have a Internet access at the time call your credit card company on the phone and make sure your payment is posted. If this is too hard then again I recommend getting a prepaid debit card and using it all the time and a credit card is only used in an extreme emergency.

Too good to be True Credit Card Rewards

Getting a credit card with rewards is OK but should never be a consideration on getting your credit card. Sometimes a Credit card with ad these rewards to you card but they might have lots of fees and a high interest rate and that's what you need to be looking at when getting your credit card not how good are the rewards on the card. So they give you free miles, or a gift card for Star Bucks or Target. They usually give you these rewards but are really taking it away plus even more on your interest for the card and the fees of the card. Also beware of a year membership fee that might be a lot higher than the rewards given for your card. After all no company is going to give you some thing for free with out it making them some money. The only thing that rewards do is pay you off with your own money and make you feel like they have given you something. Beware of rewards just look at the best bargain on interest and low or no credit card fees.

I have lots of Credit Cards.

Having lots of Credit cards is really big mistake. Keeping track of what you spend you money on starts getting very difficult and gets easy to over charge or not beware of what you spent. Only keep one credit card with you for emergency's and maybe two if you are going on a long trip somewhere. You might feel like you have a lot of money with lots of cards but really its quite the opposite. You are spending money that's not yours and even worse you have to pay back everything at before a month is over or you will owe the Credit card company lots of money in fees and interest. You should only carry one credit card with you at a time and only own three of them at max because if you own more you will only hurt your credit and might get turned down for a loan that you really need. Do not fall into this trap and consider getting a prepaid debit card and keep your debt credit card at home.

I got happy and maxed out my Credit Cards.

Each Credit card has a limit and the Credit card companies will let you go over your limit a bit to get some fee money from you. Whatever you do spending your limit is a big mistake and very costly. Even if you have all the money to pay back there is a chance you will go over the limit and pay some high fees and hurt your credit rating. The max amount you should spend on your credit card should be only about half the amount of your credit. Give it some time and your limit will be raised by the credit card company. The usually increase it pretty quick if your a frequent user and pay your bills on time. But I recommend you don't spend any of this credit card money unless that's your last resort. I recommend you getting a prepaid debit card and spend you own money. You might still get fees but very small in comparison to a credit card. Plus you never have to pay back because its your money.

Please read your Terms and Conditions.

This can really be a pain and the Credit Card companies do this on purpose they have lots of terms and condition all to make your life miserable and save their but. Just like your dad told you never agree to something you never read because you regret it later. If you can't get yourself to read the Terms and Conditions its probably a good idea to forget getting a credit card because this mistake will keep you in the poor house for sure.

When you read your Terms and Conditions keep an eye out for future fees, and possible interest increases because you might have got a 6% card and in a few months its a 23% card. You might have a membership fee of $125 dollars after a year. The one thing that always gets me is that the Credit Card company has the right to change any thing they want whenever they want. Also beware of them selling to another credit card company because they will raise you fees and interest in a split second.