Top 10 Mistakes You Should Avoid While Using a Credit Card.

What Should You Not Do With A Credit Card?

• A credit card is one of the most used products of the financial market today.
• It helps buyers and consumers pay for bulk or luxury products in equal monthly instalments with a low rate of interest.
• However, using credit cards is not a feasible option when you are facing a financial crunch.
• It may lead to debt traps and cause more harm than good to your economic stability.
• The money used in a credit card is loaned money.
• Hence, it needs to be paid.
• There are a variety of mistakes that credit card users make.

Credit Card Mistakes To Avoid

Never Save Your Credit Card Information Online

1. Many online commerce and food ordering websites have the option of saving card details.
2. This helps in saving time on your future purchases.
3. But, it is advisable not to store such details online since it is not secure.
4. Anyone with access to the account can use your credit card details for any number of transactions.
5. It is better to spend extra five minutes entering your details every time you purchase rather than risk someone hacking into your saved credit card details.

Never Share Your Credit Card Details With Anyone

• There may be instances when you are required to help your friend with your credit card perhaps because they forgot their wallet at home or, maybe they ran out of cash.
• It is recommended that in times like these when you need to use the credit card on behalf of another person, you do the transactions by yourself instead of giving your credit card information to them.
• This will help you prevent any unforeseen expenses that you may have incurred had you handed your card to your friend.

Do Not Get A Credit Card For The Wrong Reasons

1. If you buy a credit card due to the cash back and discounts it is offering; you are doing it wrong.
2. These offers are almost always misleading and come with fine print.
3. These deals and offers tempt the buyer to make unnecessary purchases and are designed to lure customers.
4. Always remember that you have to pay a credit card fee every month, which perhaps is much more than the cash back being offered.
5. This is not a wise choice for a modern-day consumer.

Do Not Transact While Using A Public Wifi Connection

• When you are in public and need to use your credit card for a transaction, do not use public wifi service.
• This problem may especially arise if you are paying using your mobile device connected to a public network.
• Wifi networks that are available in public are rarely secure and encrypted.
• It is quite easy for a cybercriminal to hack or snoop on your details by violating the network connections.
• If you have to make an urgent payment using your credit card and you require the internet to complete your transaction, always use your cellular data.
• This is far better than the public networks, and it is often quite heavily protected.

Do Not Order From Unknown Or Untrusted Sites

1. Not all online websites are safe for online transactions.
2. Always use your credit card for online purchases only on e-commerce websites that you completely trust.
3. Never store or use your credit card details on a platform that you have not used before.
4. Do not fall prey to an untrustworthy e-commerce platform.
5. If you want to purchase any product from a store you have never visited before, do not use your credit card.
6. Use alternative payment systems such as cash on delivery or a supported mobile wallet.

Do Not Apply For Too Many Credit Cards

• If you are a frequent credit card user, it is recommended that you do not purchase too many credit cards at once.
• The more the number of cards, the more payments you have to make every month even if you are not using a particular card.
• These are the card charges that come with a credit card plan.
• Too many credit cards often mean too many transactions and too many monthly payout dates.
• Having too many credit cards may lead to your defaulting payment, and this may negatively affect your credit scores as well.
• If you find your credit card balances are increasing continuously, you should opt-out of the credit cards immediately.
• It is a danger signal. And, the solution is not another card.

Do Not Set An Auto-Pay Option Using Your Credit Card

1. Many international credit card providers offer their customers an auto-pay feature for making their payments using the credit card seamless and simple.
2. This feature rightly saves time while making regular or periodic payments.
3. However, it is advisable to not register on any service using the auto-pay feature.
4. This may result in you incurring subscription charges even without you noticing the payment being made.
5. This leads to several unusual payments and adds to your credit card charges considerably.
6. Always take credit card transactions in person or manually.
7. This will help you keep track of your debt and balances.

Always Read The Terms And Conditions

• All credit card plans come with a fine print.
• These are usually the terms and conditions associated with purchasing and maintaining a credit card.
• It is recommended that all users read all the credit cards related details carefully before applying for one at large.
• This will prevent any unnecessary investments or subscriptions that come with the credit card plan as a bundle or package.
• These offers add to your monthly credit card bill and create a deep financial hole in your pocket even without you even noticing it.
• Terms and conditions are the tiny text below all the policy particulars that outline the reservations, limitations, and company policies related to the credit card plan.
• This contains information on minimum balance, credit card fees, introductory rates, transfer fees, security deposit, etc.

Avoid Paying Credit Card Dues Late

1. Always keep an eye out for your payment due date when using a credit card.
2. This will prevent you from being charged a late fee apart from all your credit card expenses.
3. Pay well within the due date and maintain a tabulation of all such payments being made.
4. This will help you remember the pay dates and the amount with ease.
5. Late fees can make it difficult for you to pay the actual credit card balance.
6. Falling behind this due date by over 30 days negatively impacts your credit score.
7. And, the credit card company may also choose to raise your interest rate to the highest penalty rate if your payment is delayed by more than 60 days.

Never Wait To Report Your Lost/Stolen Credit Card

• You may lose a credit card due to some reason or the other.
• If you lose your credit card or if it gets stolen, report it immediately.
• The longer you delay the reporting, the longer the thief adds charges to your account.
• Always block your card as soon as you have lost its trace.
• Reporting your misplaced credit card before any fraudulent charges are made using it, helps you clear yourself from all its liabilities as well.

Also Read:

Top 10 Ways to Stay Safe from Credit Card Frauds.

Credit Lock vs Credit Freeze: What's the difference?

Things You Must Know About Your Credit-Card

In Conclusion

• Millions of consumers have trouble keeping their credit card balances under control.
• It is quite natural to face an issue if you are a new credit card user.
• However, if you follow the points mentioned above carefully, you can stop committing the mistakes commonly committed by a credit card user.
• This will help you with your balances, payments, and services.

FAQs

How Many Credit Cards Are Too Much?

• It is recommended that you do not purchase multiple credit card plans in one go.
• Always purchase one credit card and use it as per your needs.
• In case you need another card for a different purpose, buy it but ensure you have read the fine print terms and conditions.
• Try to remember the pay date and not delay payments for either card.

What Should I Do If I Lost My Credit Card?

1. The first step after you lose your credit card is to report it to the credit card provider and get the card blocked.
2. Unless your card is blocked, the thief may try to add charges to your account that you may not even know about.
3. Reporting your lost card prevents you from undertaking additional liabilities as well.

Should I Use Credit Cards For Online Shopping?

• You can use credit cards to shop online but use them with proper scrutiny only.
• Use your credit card to buy products from only trusted and secure e-commerce platforms.
• Never share or store your credit card information on the platform.

Is Using A Credit Card Regularly Safe?

1. A credit card is one of the safest ways to pay in today’s world.
2. However, there are a few risks that you must be aware of when using a credit card to make such purchases.
3. Never share your card details with anyone, not even your friends.
4. Always keep a check of the balance spent.