Are you enthusiastic about laying your hands on your first credit card? That’s excellent news as you are on your way to achieving financial freedom. You not only get a chance to make a few purchases but also build a stellar credit history. The benefits of owning a credit card are phenomenal. However, you ought to use the card wisely lest it works against you. Here are the fatal mistakes that you must avoid once you get your credit card.
- Missing on a payment
It would be best if you made all the payments on time. It’s because any missed or late payments can severely harm your credit score. Any overdue amount of more than 30 days can result in a drop in the credit score. One might also incur a penalty or late fee interest rate. It will ultimately raise your APR.
You ought to pay before the due date lest you get reported to the credit bureaus. To assist you with this, you ought to set up an autopay. It will make sure that any payments get made on time always. You can also decide to set up a calendar reminder as well as email notification to help you not forget about the fees.
- Failure to review your billing statement
There are many activities that one has to handle and end up forgetting to check their billing statement. You must pay close attention to each transaction listed on your billing statement.
It will enable you to detect any reporting errors or fraudsters. You ought to verify that everything is superb. Being proactive can save you the trouble of having a potential spot fraud that might spoil your credit score.
- Not knowing the introductory 0% APR offers
There are a lot of credit cards that you can acquire to build a reputable credit history. You can click here for more info on credit cards for persons with no credit history. You might note that most of them will have 0% introductory offers. It means you won’t get charged any interest on your new purchases, the balances transfer, or both for a given period.
The offers are a magnificent opportunity to pay for your expenses without incurring any interest fees. Nonetheless, you ought to be careful and review the terms of service on the fine print. It will enable you to note when the 0% intro APR period starts and when it ends. Also, get to know the terms that follow once the offers come to an end.
- Maxing out the credit card
It’s never a good idea to use the majority of all of the available credit. A higher utilization rate might lead to lowering your credit score.
You ought to be careful as the credit amount you use plays a vital part in your utilization rate. It would be best if you keep your utilization rate on the down-low as much as possible.
It would help if you didn’t apply for many credit cards too often. Instead, visit here for more info on getting a credit card that suits your immediate needs. After that, you ought to avoid the mistakes stated above to build your credit.