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Top 5
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Paying Late.
If you don't set up any kind of automatic payment, then it canbe tempting to just put your credit card bill on a pile and getto it when you have time.
Before you know it, a few weeks havegone by and you're late. If you leave it to the deadline, youmight find that the payment won't get there quickly enough -it's not a deadline for sending the money, it's a deadline forthem receiving it.
Paying late is a big mistake for an awful lot of reasons. Youwill almost certainly be charged a late payment fee, and yourlate payment will go on your credit report for everyone to see.You may also find that you lose any good rate you had, and yourdebt is automatically thrown onto the very worst rate thecompany offers.
To avoid late payment, you should always post your payment along time before the due date (at least a week). If you've leftit to the last minute, phone up and try to pay that way.
Credit Card Mistakes
It is never, ever worth getting a higher-interest card simplybecause it offers some kind of loyalty points, flight miles orwhatever. Even if it offers a cash reward, it is unlikely to bemore than you would pay in extra interest - after all, why wouldthey give you free money? All 'rewards' do is pay you off withyour own money to make you feel like you're getting somethingfor nothing. You're not.
Credit Card Mistakes
Collecting Cards.
Seeing some people opening their wallet or bag is a scaryexperience. It looks like they have about a hundred credit cardsin there, some of which they haven't used in years. They havetrouble keeping track of all the different cards, balances andinterest rates. Don't be one of these people. You should limityourself to a maximum of three cards at a time - any more startsto make you look over-committed in your credit report, and couldget you turned down for a bigger loan.
Credit Card Mistakes
Maxing Them Out.
Your limit is just that: a limit, not a minimum! Whatever youdo, don't get a card and immediately spend your whole limit.This looks very bad. It is better to spend about halfwayregularly and pay it back. Wait for the company to increase yourlimit (which they quickly will), and then you'll get that extramoney without the stigma of having a maxed-out card.
Credit Card Mistakes
Finally, as ever, don't sign anything you haven't read! I knowit's hard going and you're busy and all, but if you can't manageto read the terms and conditions then you shouldn't get thecard.
Pay special attention to any future increases in rates,and what kind of fees you can be charged.
About the author:Sharon Cowles is the owner of http://www.cardbankusa.com.Cardbank USA offers a wide variety of credit card offers anddebt solutions.
See also credit card numbers and what they mean, applying for a credit card with no credit history
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