Using a credit card is not as smooth as it seems. You can easily fall into bad habits. Taking a one-time exception on something becomes common routine before you can change it, and the before you know it you get into a habit that is close to impossible to break out of. The bad credit habits can pose a danger to your credit score and eventually lead to debt plus a number of other financial issues. Credit card issues not only cause major financial issues but can threaten your stability and long term goals.
The following are ad credit habits that you should avoid entirely
Not checking the credit card statements
There are lots of bills coming in the mail every month, including the credit card statements. Reading all of them is boring and time consuming but it has it benefits. With credit card statements, you have the chance to catch billing errors and authorised charges that would otherwise make the payment more expensive.
Making multiple purchases without checking the credit card limit
Most people take the credit card for granted especially when they are making purchases. People go for weeks or even months without checking the credit limit. If a payment or purchase is not applied correctly on your credit card or your credit limit is lowered you need to know. You need to confirm that you have enough money in your credit card before you make any purchase so that you do not go over the limit.
Pulling out the credit card instead of debit card
Unless you are using the card to collect rewards and you make complete payments on the credit card every month, you should stop using the credit card every time you make a purchase. choose to use your debit card instead to avoid going over the credit limit so you can make payment easier for you.
Paying the minimum
While it s easier to make minimum payments, it does not help you to clear the credit card bill fast. This means that you are not making enough progress towards paying off the bill and you will probably pay much more charges than you need to.
Making late payments on the credit card habitually
We live in an age where you can schedule the credit card payments a few days in advance, which gives us no reason to make late payments. If you constantly forget to send the payments, it could affect your credit card by a lot. Making the payments on time will save you an increase in interest rates and some penalties.
Transferring the balances to avoid your payments
While balance transfers are a great strategy to pay off the interest rate balances, they could hurt your finances in the long run. Balance transfers have fees that will increase your balance and make it harder for you to clear the credit cards.
Purchasing items you cannot afford
Next to making late payments is purchasing items you cannot afford is the worst habit you could have. You get deeper into debt and ruin your credit card for no reason. You should never purchase anything if you cannot afford to pay for it and risk ruining your credit card scores.