5 Credit Card Mistakes That You Keep Doing
Some people shy away from credit cards because they worry about ending up in uncontrollable debt. While that is a valid reason, most credit card troubles can be avoided by staying clear of these common mistakes:
Card Mistake #1: Not Examining Your Personal Credit Reports
This is your report card to banks. Always ensure that the information in your credit report is accurate, ensuring that your report does not list any debt you don’t have. Inaccurate listings can make you look like a bad paymaster with a poor credit score. For information on obtaining your credit report, follow these instructions on the Bank Association of the Philippines Credit Bureau’s website.
Card Mistake #2: Not Monitoring Credit Card Expenses
Since you don’t see your cache of cash depleting every time you pay with a credit card, you’ll probably be tempted to use your credit card all the time! Be sure to track what transactions you make on your credit card, and ensure that your monthly spending falls within your pre-set budget.
Card Mistake #3: Forgetting Balance Transfer Cutoff Dates
A number of banks offer lower interest rates when transferring credit card balances from an old to a new card. However, the lower-interest period only lasts for a short period – this period is stated in the fine print which many people tend to miss. Find out when the balance transfer period ends, and use this information to your advantage.
Card Mistake #4: Failing to Keep Automatic Payments in Check Automatic Payment Scheme
Most people set automatic payment arrangements for the convenience they provide. Some also forget to reevaluate these arrangements when they switch cards. As a result, these standing orders can leave bills unpaid, or worse, accumulate debt amounts on unused or ignored credit cards.
Card Mistake #5: Not Reconciling Credit Card Records
Tracking and reconciling your personal credit card receipts, statements and bills will help you detect any mistakes made by banks, or even fraudulent transactions. These items can lead to a poor credit score, or result in you paying more in credit card charges than you should.