Credit Card Mistakes to Avoid

When signing up for a credit card and using the card there are a few terrible mistakes you can make. The first mistake is open up a bad credit card offer. This is often the first offer you get when in college or in the mail. Do not open this account but shop around first and compare offers.

The next major step is reaching the limit of a credit card and maxing it out. It is better to have two credit cards with only 50% of the limit used than one with a maxed out limit. This will hurt your credit and often result in increased interest rates and fees.

The last mistake is missing a payment. Missing a payment on a credit card will hurt your credit and result in much higher interest rates and late fees. To remind yourself cirlce a date on the calendar of every month. One trick I use is to make two payments on a credit card every month (they can be small) so that I never miss a billing cycle.

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