People often rely on their plastic cards to pay for bills, vacations, and other leisure expenses.
But just because that money is available, doesn’t always mean we have the money to pay it all back right away.
Here are the top four credit card mistakes you should want to avoid, according to bankrate.com:
Paying only the minimum
If a person carries a balance from one month to the next, he or she will incur interest, which will be more expensive this year.
A credit card expert says if a person is only paying the minimum he or she is getting into the habit of carrying a balance. It’s important to always try to pay off that full amount.
Assuming your interest rate must rise
Credit card companies recently raised interest rates after the December meeting of the Federal Reserve, according to bankrate.com.
CreditCard.com March 2016 survey shows that nearly 8 to 10 cardholders who asked for a rate cut received one.
If you have good credit, don’t be afraid to negotiate.
Ignoring your penalty rate
This is a big no, no!
Making late credit card payments can result in a penalty or default rate. This is a very high-interest rate, close to 30 percent, according to bankrate.com.
Paying late repeatedly
Paying credit card bills late can sometimes set people back financially.
According to bankrate.com, this is a sign that you’ve become overwhelmed with debt. Paying late can also be more costly.
The Consumer Financial Protection Bureau reported that they have raised the maximum late fee for a second and subsequent last payment within six months, according to bankrate.com.
It’s in one’s best interest to pay on time and above the minimum payment requirement.
This report contains information from bankrate.com.