3 COMMON MISTAKES THAT MOST CREDIT CARD HOLDERS MAKE

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3 MISTAKES THAT ALMOST EVERY CARD HOLDER MAKES

CREDIT CARD is a financial instrument that if used wisely it can be of great use to everyone.But if overused then it can lead to trouble.most people are afraid to use credit cards as they feel that it results in financial charges and late fees and other charges .And for this reason they opt for cash transaction.

The main reason that leads to charges isbecause you are not using the credit card in the right way.

The 3 mistakes that i have observed most credit card holders make are:-

USING THEIR ENTIRE CREDIT LIMIT IN ONE GO

PAYING ONLY MINIMUM AMOUNT DUE ON THE PAYMENT DATE

NOT MAKING TIMELY PAYMENTS

USING the entire credit limit is not at all wise for any card holder.Use the amount that you are in a capacity to pay.Making big amount purchases and making part payments or only minimum amount due not only blocks your limit for that particular amount but you attract financial charges to your credit card account.By paying the minimum amount due most card holders believe that they are safe from paying the late fee charges and that the credit card will not be blocked.But they forget that every month till they clear the entire total amount due they are paying interest on their outstanding limit.Paying only minimum amount due will not at all help as you are being charged for your outssanding due amount.Remember that credit card means you are using someone else’s money and if you will not pay the entire amount you will be levied charges.So in other words you end up paying more than you transacted for.and that’s a big loss for you.The third mistake is not making timely payments.It is very important for every card holder to remember the date his credit card statement is generated and the payment due date. If you will drop a cheque for making payment of your credit card dues a day before or after your payment due date ,by the time the cheque is cleared and amount is credited to your credit card account it will be too late and you will be levied with charges.The right approach is to drop a cheque atleast 4-5 days before your payment due date.In case you have your credit caqrd account and bank account in the same bank.Then you call the customer care and place a request for payment  over the phone.Or go to the bank branch and make a cash payment for the amount due on your credit card.

Credit card is very useful and helpful as it is used everywhere today.All you need to do is be very wise in using it and it can prove to be of great benefit to you.