Could You Be Making A Credit Card Mistake?

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by: ashleymiller80
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Date: Tue, 15 Feb 2011 Time: 2:40 AM
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Having a credit card can be a very good thing. It can also be a very stressful thing as well. Many people find themselves facing credit card default, others are already in the firm grip of credit card debt, while other’s find themselves in bankruptcy to fix their financial lives. What is sad but very true about all these instances is that they are happening every day and within just a blink of one’s eye.  The domino effect of debt, can all start with just one little, tiny, diminutive mistake.

Here are some credit card mistakes that are made far too much.

1. Many people do not carry enough cash around on themselves to cover expenses for “just in case” purposes. Due to the Dodd Frank Act, merchants are allowed to turn down anyone’s credit card if the purchase adds up to under $10. This simply means that customers, who only buy a single cup of coffee averaging $4 using their credit card, can be turned down at their favorite coffee locations if the merchant does not want to accept it. Therefore, it can be beneficial to any credit card carrier to carry at least $10 on them at all times. The reason this is counted as one of the mistakes is that most customers end up buying more items then they had originally wanted to make their purchase above $10. 

2. Another common mistake that many people make when it comes to their credit card is terms. While many people read their terms of agreement when it comes to their application, they do not always read the terms when it comes their merchants. Consumers must be aware of APR changes and fees at all times when it comes to their merchants. This can help a lot, especially where those hidden fees like to pop-up.  

3. When it comes to mistakes, many people are far less observant than they should be on their credit cards. While many people glance at their credit card statements every month, they do read it over thoroughly, looking for changes that might have been added since the month before. Credit card companies have to tell their clients about permanent changes, but they do not have to tell them so boldly. Most of the time, these changes come in the form of “fine print” listed in a very strange section of any credit card statement. It really pays to read the statement through and through. 

4. Some people fail to use their credit and end up finding their account closed or finding that their spending limit has decreased. This happens a lot, to many people. If you have a credit card, you could be making a mistake if you never use it. I know many people have a credit card for emergencies only, even so, the credit card should be swiped here and there to avoid account closure or a decline in one’s spending limit.  

5. Finally, the biggest mistake that people make is on their balances. So many people fail to pay their balance off, which can unfortunately cause one to go into default or even into a charge-off if done too often. It is very important to pay the minimum amount due on your credit card statement. It is an even better idea to pay a little more than what it due, just to keep yourself going in the right direction. 

About the Author

About the Author

Ashley Miller is a seasoned veteran of the credit card industry who is now working independently to help consumers get fair treatment from the banks in this country. I strive to provide all the secrets you want to know about credit card default, and other credit card problems.