Of course, using credit cards is convenient. After all, our capabilities do not always coincide with our desires, and a credit card successfully bridges this difference.
But no matter how profitable a credit card may seem, it is worth remembering that banks came up with this tool to make money. On whom? Of course, on you and me. Let’s talk about 9 typical mistakes that sometimes add trouble to all credit card holders.
1. Withdraw cash from a credit card
Of course it’s expensive. Every time you push your credit card to the ATM, one of the bankers happily rubs his hands. The percentage for cash withdrawals will hit your budget quite noticeably, so try to do without this operation.
2. Lose a card
It is better not to lose bank cards (not only credit cards). For if they fall into dishonest hands, you can lose money. Of course, it is almost impossible to withdraw cash without knowing the PIN code, but it is quite possible to make a purchase on the Internet.
3. Have multiple cards.
The more cards a person has, the greater the chances of getting into debt. Do not keep several credit cards at home, they will be difficult to keep track of. In addition, for the maintenance of each of them, money can be withdrawn. The same applies to loans on financial services.
4. Overbuy
Have you ever wondered why banks issue plastic cards for free, persuade you to use them, providing more than a month of grace period? It happens that even part of the funds spent is returned in the form of cashback. Clients, at first glance, benefit from this. But why do banks need such “charity”? Everything is elementary, Watson, – so the famous detective said. – Banks know that having a credit card is a great temptation to use it. More purchases, more debt… In the end, the banks will get their interest.
5. Pay with a “black” card, not a “white” one
If the card has the ability to “go on credit”, we spend more money than if there was a fixed amount of cash. Simple psychology, nothing personal. This has long been noticed by bankers and retail chains. To get around this trick, go shopping with a list.
6. Don’t look for better conditions
Different banks and financial services – different conditions. Someone offers a longer grace period, others offer cashback for card payments. Choose the one that is beneficial for you.
7. Pay only minimum payments
It is beneficial for the bank that you owe it as long as possible, so try to repay all the debt before the grace period expires.
8. Late payments
If it is not possible to pay the full amount of the debt on time, then pay at least the minimum payment. Otherwise, the bank, depending on the terms of the contract, will charge increased interest, and also a fine in addition.
9. Don’t check your account statement
Rarely, but it happens that criminal hackers gain access to bank accounts and can quietly “milk” people with money. A more common situation is with a technical failure, when the same check is deducted from your account twice in a store. It is easy to prove the illegality of such an operation if you notice it.
So, do not make such mistakes and loans will always be beneficial for you.
Expert in legal marketing. Head of marketing agency MAVR.
Business degree “Master of Business Administration” (MBA).