Don’t let your credit card habits leave you grappling with debt

Credit cards

If you don’t pay too much attention to the way you use your card or how much you pay off each month, you are likely to encounter a financial crisis sooner rather than later. To avoid ruining your credit, here are some things you should avoid doing.

Failing to make payments

If you miss a payment or even make a late payment, you will be charged for it. Sometimes, this occurs due to forgetfulness. Set a direct debit payment for your credit card to avoid this from happening.

Repaying minimal amounts

By covering your credit card debt as soon as possible, you will be able to save on the interest you would have had to pay. Although a low minimal repayment makes credit cards seem more affordable, you just end up losing greater amounts in the long run.

Being unaware of your credit score

Know your credit score before applying for credit cards or you may not be accepted. Being declined will have a negative impact on your score, which will hinder future credit. Check your credit score beforehand and make sure all your details are right. If they are not, improve your score before applying for the credit card.

Withdrawing cash

You will be charged interest, and the possibility of being charged a higher APR is also present. There is also a 2-3% fee for all cash withdrawals made with your credit card. Your credit card is not meant for advances or loans. Avoid under all circumstances or you may pay more than you can afford.

Instead, make sure you…

Find the best APR rate. While getting credit cards, you should analyse the different interest-free periods on balance transfers and purchases and also check out the different APR rates that suit your financial situation. For instance, even if a card advertises a 0% interest rate, this may not be applicable to purchases.