Let’s face it, credit cards are a great financial tool that can guide you to fantastic rewards and numerous benefits, but if misused, they can lead to huge losses and even damage your credit score. The difference lies in how you use your credit card. If you are financially indiscipline, these plastic cards aren’t meant for you.
While most Canadians have one or more credit cards, only a few of them spend time thinking about them. Just like the no credit check loans in Montreal, you have to ensure that you pay your credit card debt on time to avoid damaging your financial history. Here are some credit cards mistakes that you need to avoid at all costs.
Late and Missed Payments
The first sin of credit cards that you could be making is missing to make your payments on time. You need to keep in mind that late payments not only lower your credit score but they also remain in your credit report for at least seven years. Since they take too long to go away from your report, you should do everything possible to avoid late or missed payments.
Fortunately, it is quite easy to avoid late credit card payments. Simply sign up for your card issuer’s online banking system and turn on the due payment alerts. Pay attention when the email arrives and make plans to complete the payment on time.
Making Only Minimum Payments
If you are carrying a credit card balance, the last thing that should come on your mind is making the minimum required payments. Paying only the minimum will not only prolong your repayment period but also make the credit card companies start monitoring you since this behavior indicates that you are in a constrained financial situation and you could stop making the payments anytime.
While your credit statement shows you exactly how much it will cost you to carry your current balance if you make minimum payments, you need to keep in mind that if you choose to go ahead and make minimum payments, you will end up paying more interest than you anticipated.
Loaning Your Credit Card
One of the worst credit card mistakes that you can commit is lending your card to someone else. Before you do that, you need to remember the fact that if you give your credit card to someone else, you will have no control over the purchases that they make, but you will be responsible for paying the bill. Never give your credit card to your friend or relative unless you are fully prepared to pay for all the purchases that they might make using your card.
Applying for Too Many Credit Cards at the Same Time
Did you know that each card application that you make has the potential of knocking some points off your credit score? Instead of applying for too many credit cards over a short period, consider applying for no credit check loans in Montreal when you are faced with a financial emergency. Furthermore, when you make too many card applications, lenders will start getting suspicious about you, and you risk facing frequent denial which could hurt your credit score further.