You don't have to be a frequent credit card user to make a costly credit card mistake. Credit cards can offer the ultimate in convenience when you're traveling, shopping online, or just trying to balance your budget. However, a few slip-ups here and there could set up you up for credit problems in the long term. High fees, a drop in your credit score, and extra charges that you didn't realize you authorized could have you stuck with a serious credit dilemma in a few short months. Fortunately, many common credit card mistakes are preventable.
Here are six common credit card pitfalls to avoid:
[See 10 Ways to Improve Your Finances in 2011.]
1. Using credit card checks. Those handy checks your credit card companies send in the mail may prompt you to go on a mini-shopping spree, but keep in mind that this is the equivalent of taking out a cash advance--and a costly one at that. Cash advances on credit cards typically involve high interest charges and fees, and you could end up paying a higher interest rate on your entire balance when you cash that check. Make sure you're aware of the fees involved with signing a credit card check.
Monday, October 10, 2011
6 Common Credit Card Pitfalls to Avoid
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