Having a credit card is a great deal that offers you to spend an amount whether you can need it or not. Just a swap at the shopping counter can help you to buy trending stuff. That really sounds great! But do you realize, sooner or later you have to clear the credit card payment, otherwise it can lead you to debt and affect your credit score? 

So, before making a credit card part of your life, check out these common mistakes, whether you are conducting or not. Learning from these mistakes can save you money in the long run.

  1. Not familiar with the fees

Banks are profit-making businesses, which is a good deal. But you need to be aware that your motive is not to make a bank profit. Your aim is to boost your savings account. Therefore, focus on it and check out bank changes for not paying the credit card amount on time. These charges vary from bank to bank or credit card issuing agencies with the inclusion of hidden charges. 

  1. Unaware of how long you will pay off

Buying anything with a credit card is an easy step. All you need to do is swapping a credit card at the counter and the thing will be in your hand. But at the same time considering payment methods is also important. Therefore line up all  your sources of income and compare them with the current expenses list. You will get to know a clear figure and how long it will take you to pay the loan. Do not forget to add overtime, bonus, and other income sources and consider all costs (major and minor).  

  1. Keep on clearing the minimum amount 

Most credit card users feel clearing minimum card balance can save them from irritating calls from recovery agents. Keep in mind, paying the minimum amount is just the interest that you are paying. Therefore, try to clear more than the minimum amount. You can also choose to consolidate credit card debt as a perfect option to clear your balance on one go. It can also help you to improve your credit score. 

  1. Considering credit card as emergency funds

Some of the new card users consider that taking credit card assistance for emergency funding is a great idea. But did you ever realize that what after when an emergency will be over? Can you arrange funds to clear credit card payments in one go? And if you will not be able to clear, you have to pay every month a fixed percentage minimum balance. Rather than using a credit card, the best idea is to start saving for emergency funding . It will save you the hassle of repaying the amount to anyone. 

Bottom line

Choosing credit cards without considering the darker side, can let you in trouble. Remember, choose a personal loan or debt consolidation offer that offers you loans at favorable rates. Paying every month’s fixed amount gives you relief that your principal and interest both are reducing with every payment.

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