Have you ever given a thought on how you use your credit card? You may or may not but the issuer sure does. Let’s take a look at 4 kinds of people who should think twice about using credit cards.
The unorganized bill payer: If you are the kind who pays your utility bills after the due date, you can always get away with an annoying service interruption and a nominal late fee. But with a credit card the consequences include high interest rates, larger late fees and severe damage to your credit history. Don’t get to this point where you feel you were better off without a credit card.
The habitual revolver: You fall under this category if you constantly carry a balance on your credit card statement. If you think just paying a small monthly payment is good enough, think again. You are ultimately spending a lot on interest charges. Avoid this by paying off your balances and gain control on your finances.
The reward point enthusiast: People in this category are so fixated on reward points, air miles and cash back offers they make unnecessary purchases subconsciously. Of course you are adding on the reward points but what you are actually doing is overspending just to get a percentage of it back through these offers. Keep a track of your expenses.
The fine-print illiterate: A credit card is a simple way to pay or make purchases but have you gone through the fine print? If you are the kind who is not bothered to learn how a card works, you might fail to understand how interest charges are applied, how cash advances work and how to avoid fraudulent charges.
Credit cards are a great source of financial security and convenience for people who manage it wisely. If you are the kind that doesn’t figure in any of the above categories, we have some really exciting offers on credit cards that you should consider.