You may feel interested to use credit cards because of alluring offers and reward points but it is not always wise to use a credit card because you may never know when you might commit a serious mistake as mentioned below:
1. Using too many credit cards may easily land you into trouble. It is also costly to maintain so many cards at a time.
2. Rate of interest is misleading for all types of credit cards. It may lead up to 36% p.a. because card companies will charge you per month and calculate interest per day.
3. We often do not read the offer properly. We think of the 0 % interest but forget the conditions that apply. It can be way too expensive.
4. Wrong choice of use is the common mistake. Often, we do not think of whether we need a card for a particular reason and end up purchasing unnecessary cards and incurring costs.
5. Having a credit card requires you to purchase with it but if you do not purchase, it is of no use, rather it will hurt you with annual fees.
6. Sometimes we think that paying off minimum balances will not charge a lot but it is another mistake we often make. Card companies just wait for you to make mistakes. They will not only charge you but charge you a lot.
7. Late payment can hurt you a lot because it will destroy your credit history. It will hurt your credit scores and moreover it will hurt you in the form of high rate of penalty.
8. Some of us even do not see our monthly statements. It is a big mistake. You can easily track your credit card use if you cautiously observe your monthly bill.
9. Card companies intentionally let you cross your credit limit so that they can charge you more. If you keep observing your statements, you can easily remain within your limit.
10. We sometimes use credit cards just to use them but we do not really need those things which we buy using our credit cards.
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