There are people who can’t live without credit card, while there are still some that wouldn’t get a card just to avoid being neck-deep in debt, there are those that take credit card as a necessity in their life.
These people who uses credit cards are often eaten by their credits. Having a credit card gives takes a person to a quicksand of debts, if you move or create mistakes too much, you’ll just sink further, but if you relax and do not move too much, you’ll be saved.
Here are some credit card mistakes that people often commit to even if they do not know it.
Getting too many
Having a credit card is essential to your credit score. All you have to do is to make a few calculated purchases and make sure to pay regularly and on time.
Contrary to what other people believe, having more than one credit card, even if they are properly being paid for is not going to make you more eligible to get loans. So you might as well have one credit card and concentrate on paying for it to get good credit score.
Getting a new credit card before getting a loan
Getting a new credit card takes your credit score into a momentary plunge downward. It will probably take six months or a little over it to be able to stabilize your credit score again. This happens because getting a new credit card, even if you have maintained a properly paid previous one, does not guarantee that you will be able to pay this new one properly.
If you plans on getting a car or a cash loan, make sure that you don’t get a new credit card 6 months prior it. That will not guarantee that you will get approved but it does guarantee that your credit score will not take the unnecessary plunge that may hurt your chances.
Thinking that you have to spend to earn rewards
Rewards are often offered by credit card companies. The deal is that you have to spend a certain amount of swiped payments using your credit card to be eligible to get the rewards. These kind of marketing schemes are what is making credit card companies work.
If you like to have a reward that is being offered, a good move is to first compute the amount of the reward you are aiming for versus the amount that you need to spend to get it. Chances are, the reward itself is cheaper than what you want to buy. A better way to approach this is to just buy the reward, another good thing is that if you don’t want it that badly, you will end up not buying it instead.
Credit cards are a huge help to people. It can also be a big help to you, you just have to remember that too much of anything is not a good thing. So practice diligence and discipline, and watch your credit score soar up.
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