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Author: Wendy Ng

Avoid the common Credit Card pitfalls

Unfortunately, we hear too much about how unhappy people are with their current credit card. More often than not, their dissatisfaction could have been easily avoided, and their concerns are all too common.

Below are the four most common mistakes we hear about when it comes to choosing the right credit card, and how they can be avoided.

1. Getting the wrong card for their needs

Whatever you do, be sure to look past how Credit Cards are marketed, and closely examine the finer details of how the card works using a Key Fact Sheet. Make sure you consider what sort of credit limit will suit your means and lifestyle, and get a handle on your spending habits so you know you’ll be getting the best value from your card

2. Not knowing what you’re in for

It might sound cliché, but there’s a reason your parents always told you to read the fine print. You should get as much info as you can beyond the initial marketing of a card, so you know exactly what fees and charges you can expect.

Take into account things like balance transfers, interest free period and post-honeymoon interest rate and get as clear a picture of the workings of a card before you commit.

3. Not making payments on time

If you’re on a restricted income, or have a busy work or family life, it can be difficult to always meet your commitments on time, but making your credit card payment on time is a simple way to avoid interest charges and late payment penalties.

4. Paying for charges you didn’t make

If you lose your card, or it gets stolen, your number one priority should be to notify your card provider. By doing this quickly, you may be able to save yourself the rigmarole of having a new card issued.

The danger lies in the fact that if your card goes missing, and you put off notifying your provider, you may be liable for charges made.

By avoiding these common mistakes, you put yourself in the best possible position to get the right Credit Card, with the best deal, to suit your needs.