Credit card play an important role in modern consumption, providing a convenient payment method and generous rewards. However, many people tend to fall into some misunderstandings when using credit card, which leads to uncontrolled credit card expenses, debt accumulation, and even affects personal credit records.
When choosing a credit card, many consumers pay too much attention to the credit card’s rewards, cash back and various promotional activities, while ignoring the card’s interest rate, fees and other terms. Although the credit card’s rewards and supply seem attractive, if other unfavorable terms are ignored, the final result may be than the.
Compare credit card terms thoroughly: When choosing a credit card, pay attention not only to the rewards program, but also to important terms such as annual fees, interest rates, and minimum payments. Make sure you can make reasonable use of the credit card rewards while avoiding high interest rates and unnecessary fees.
Choose rewards and supply carefully: Don’t choose a credit card just to chase rewards. Choose a card that matches your spending habits to ensure that you can maximize its rewards without getting into unnecessary burdens.
Ignore annual credit card fees
Many credit card come with hidden fees such as annual fees, cash withdrawal fees, and foreign exchange transaction fees. If you accidentally overlook these fees, it may lead to unexpected additional expenses.
Pay attention to annual fees and other fees: When choosing a credit card, be sure to understand the annual fees, fees, and other additional fees to avoid paying extra fees due to unclear terms.
Make reasonable use of annual fee waivers: Some credit card supply annual fee waivers for the first year or annual fee waivers through consumption requirements. You can choose these cards and to take advantage of other credit card supply during the annual fee waiver period.
Frequent credit card applications or excessive credit card use can easily result in frequent inquiries on your credit report, which can affect your credit score. At the same time, using than your credit card limit may also result in late payment fees and higher interest rates.