Credit cards that are used wisely can be a convenient financial instrument for its holder. But, according to statistics, not everyone knows how to properly dispose of “plastic”. For most of us, sooner or later the moment comes when we need to take a loan. But when you make out a credit card, there are many temptations to make a spontaneous purchase or withdraw cash.
It may seem banal, but the errors described below, people continue to make day after day.
Missed credit card payments can harm you in both the short and long term. As soon as you miss a mandatory payment, you will most likely receive a penalty charge that will be debited from your balance. In addition, if you had a grace period, it will immediately end and you will receive interest. This is a short-term damage.
In addition to penalties, the lender may indicate in your credit report a record of non-modern payment. If you delay payment by 30 calendar days, be sure that the credit history will be deteriorated. Consequently, the subsequent car loan or mortgage will become more expensive for you.
It is very important every month to make a payment in favor of the credit account, even if it is a minimum payment.
If the bank gives you a credit limit on the card, for example, 100,000 rubles, this does not mean that it is worth spending it in full. That is, you have such an opportunity, but the full spending of the limit affects your credit history. Do not forget that you should use no more than 70% of your credit limit. Otherwise, the lender will consider you a person who is used to throwing money.
Here we are again talking about the foreseeable future. If you want to take a loan for a house or car, such entries in your CI will have a negative impact. The lender will decide that it was difficult for you to handle a smaller amount than is required now.
A credit card is a very convenient tool for paying for purchases that you don’t want to postpone. But, if you need cash, it’s best to find another way to get it.
Banks are not very interested in issuing cash loans for any needs. Therefore, before approaching the terminal with your credit card, think about the consequences.
First of all, find out the fee for withdrawing cash from the card. As a rule, it is 3% of the amount. So, when withdrawing 100.000 rubles, you will immediately pay 3.000 rubles. Not to mention that you can not do this if the account does not get the amount to pay the commission.
Also check with the bank for other conditions. In some cases, the grace period for cash withdrawals is not valid. That is, the next day you immediately begin to accrue interest. Some banks may have a different rate on the loan if you have not made a purchase with a card, but have withdrawn funds.
Such a reminder may seem harmless, but it certainly will not be superfluous.
Just because you have an affordable loan does not mean that you have to use it for making optional purchases. Yes, the temptation is great, while in the store, buy a brand new TV or smartphone. The card is in your pocket, and you will have to pay it later, once a month … Of course, you need to pamper yourself from time to time to raise your spirits and morale, but you should always know for sure whether you can handle the debt load or not. If there is any doubt, it is best to come home and think about a purchase in a relaxed atmosphere.
Perhaps the worst credit card action described here. According to statistics, a third of the cardholders who handed it over to someone suffered financially. Negative outcomes were different. This payment of foreign debts, disassembly with the bank due to delinquencies and even theft of cards.
If you decide to go for it, it is best to withdraw cash from the card and give it to a relative. Let you pay a commission (or a relative), but you will know exactly how much money was transferred and that it will not grow over time. You also need to be prepared for having to pay the entire loan yourself. The chances of proving to the lender that it is not you who should give this money zero.
At first glance, this item may also seem harmless. But imagine that someone took a picture of his map and published it on his page. Of course, hardly anyone would do that. But when you talk in social networks about the places where you use the card, about the amount of purchases and other facts, you help the attackers to steal your personal data.