10 Credit Card Mistakes to Avoid: #1 – #5

In today’s world it is hard to manage without having a credit card. However, for many of us, credit cards can cause financial trouble if they are not carefully monitored. Below are a few of the most common mistakes made by consumers with their credit cards:

  1. When it comes to credit cards, more is NOT better! If you get too many credit cards, it is more likely you will get deeper in debt and not be able to keep track of what amounts you have accumulated on your cards. Each credit card will have its own annual fees and interest rates, which can quickly add up if you are not keeping track of them. Finally, having too many cards can have a negative impact on your credit rating as well as your ability to obtain loans.
  2. When you are looking for a credit card, it is essential that you shop around for the best interest rate. The higher the interest rate on your card, the faster your debt will accumulate when you start to miss payments.
  3. Most credit card lenders offer great introductory rates. Thus, many consumers are tempted to get a new card and transfer their other balances to the new card with the 0% interest rate. What they do not understand is that if they fail to pay the full amount put on the card during the introductory time frame, the interest charges are applied retroactively and typically at a very high interest rate.
  4. We all know that reading a credit card agreement is tedious, but it is necessary. All of that fine print is where you will find how long the introductory rate will last, what the balance transfer fees will be, and a variety of other fees and charges you may encounter. It is essential that you read the entire credit card contract to confirm you are actually getting a good deal and avoid getting unexpected and expensive surprises down the road.
  5. A credit card that offers a beneficial rewards program or rebates can also be tempting. However, you should never choose your credit card solely for their “benefits package.” Rebates and rewards are important, but they are only one factor in determining which credit card is right for you.

Please read our next blog for the next 5 tips on how to ensure you avoid common credit card mistakes. If you are severely delinquent on your credit card payments and you don’t know what to do next, let us help.

Take the first step to resolving your debt problems today by contacting us for a FREE initial consultation. The attorneys at Fitzgerald Campbell represent debtors all over the State of California in debt settlement, collections harassment and credit card lawsuits.  If you have a matter relating to a debt you owe, contact us today by calling (844) 431-3851 for a consultation.

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