5 Credit Card mistakes you are making unknowingly

Doesn’t matter whether you got your first credit card last week, or you are familiar with credit cards for years, mistakes regarding credit cards can cost you way more than you can imagine. Here is a list of the mistakes you should avoid while getting or using a credit card.


 

Not looking for “The One”

No, we are not talking about your life partner. But the right credit card can give you all the financial love and support you seek for. Identify your needs and spending patterns and do proper research to find a card that will complement your needs in the best possible way.

Ignoring this step will cause you to lose your benefits and risks, and therefore increase your expenses. Credwise helps you find just the right card among thousands of cards available in the market, by looking at your choice of bank and spending limits on selected categories.

Not being punctual 

Being punctual definitely has its benefits in real life but we shall leave that to your kindergarten teacher. Whereas being punctual with your credit card bill payments will save you a fortune, by keeping your credit score from being impacted negatively.

A few solutions to this problem can be putting reminders, using mobile-phone applications, and availing of auto debit services.


 

Only paying the minimum amount

Paying just the minimum amount to avoid interest and charges, is quite a common mistake by cardholders. Paying back the minimum amount may save you from the late payment charges but the interest can not be avoided. 

Paying as much as you can, including the minimum amount can help you take some of the interest burdens off of your shoulder. 


 

Not tracking your Credit Card

Why would we ask you to put a GPS tracker on your card? We are asking you to track your Credit Utilization Ratio constantly and make necessary changes in your spending habits. Not knowing the perks and benefits of your Credit Card and making purchases in the wrong category will affect your Credit Score and Credit Utilization Ratio, which has a high chance of putting you in a debt trap.

Stay well informed about the perks, rewards, benefits, cashbacks, and the categories they are being provided. Apart from this, controlled and mindful spending habits will help you avoid such a mistake.


 

Withdrawing cash at an ATM

Basically, Credit Card is the evil twin of Debit Card who charges you back when used for cash withdrawals in ATMs. Banks charge you a processing fee every time you use credit cards to withdraw cash, which increases your expenses.

So, avoid using Credit Cards at ATMs at all costs, until and unless there’s an unavoidable emergency.



 

To avoid these mistakes, add your credit cards on Credwise and track your expenses easily. Share your card benefits and rewards with your connections and improve your credit score. 


 

Click here to read other articles regarding credit cards.


 

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