5 Common Credit Card Mistakes You Might Be Making

Considering the numerous rewards, welcome bonuses, and credit building opportunities along with fraud protection that many credit card companies offer – credit cards can be significantly beneficial for you in numerous ways. However, it's imperative to make sure you are being a responsible cardholder first.

Here are the 5 common credit card mistakes you may have been making all along and just the ones you need to avoid from now on –

Not availing the right card

Nowadays, with different sorts of credit cards available with their diverse set of perks, there must be a card that best suits your financial requirements. However, most borrowers often choose a card that does not fit their profile. It is of paramount importance to conduct detailed research before applying for a credit card to avail the best.

You can avail a SuperCard to enjoy its innovative and industry-first benefits such as –

Interest-free cash withdrawals from ATMs for up to 50 days.
Convert your credit into an interest-free loan in case of emergencies.
Enjoy robust security features such as ‘in-hand security’ along with ‘zero-fraud liability coverage’ to mitigate cybercrime threats

Know how to apply for a credit card online and enjoy its numerous benefits.

Not reading credit cards agreements

The second most common mistake is applying for a card without adequately going through its terms and conditions. Skipping these agreement details could lead to significant repercussions. It includes the card’s benefits entail, rewards’ expiration dates and any fees payable along with other card issuer policies.

Carrying a balance or completely maxing out your card

Carrying a credit card outstanding balance over to the next month’s statement is common amongst users. If you use your total available card limit, you may face multiple problems like high credit utilisation ratio, overwhelming debt and increasing interests together. This negatively impacts your CIBIL score and your credit history. Therefore, you must strive to pay up more than the minimum balance due each month.

Not redeeming reward points

Credit cards come with reward point programs offered by the card provider to help users benefit more from the cards. However, many cardholders forget to redeem them to enjoy the benefits. If one isn't sure what reward program works – you can read the terms and conditions or call up your credit card customer care regarding how to redeem the reward points. You could also set-up automatic rewards redemption. This way, when one reaches a specific threshold, his/her earnings will be automatically cashed without having to worry of expirations.

Not inspecting the card billing statements

One last common mistake is failing to check your card billing statements. Not checking them could result in missing billing errors or any signs of fraudulent activities. These issues, when ignored for a prolonged time, could pose severe threats like damage to the credit report, unnecessary loss of funds and more.

To avoid such discrepancies, it's a wise thing to check your card billing statements and account activity regularly. Such precautionary measures help you to identify any issues beforehand and allow you to protect your financial health better. You can also call your credit card customer care for expert advice on how to use the credit card wisely.

By following these guidelines, one can reduce his/her chances of committing these common credit cards mistakes. Refer to top credit card issuers to enjoy the best benefits. Plan your finances to always meet your total outstanding dues each month and enjoy better benefits on the card in the future.