However, there are a number of missteps you can make that could make your credit cards into a burden. If you are ever faced with a bill you can’t afford, consider a bad credit signature loan, to stay out of more damaging credit card debt.
Always Read The Fine Print
Some credit card companies attract new customers by advertising top-notch rewards and affordable interest rates. But if you don’t read the fine print before signing on, these advantages can turn out to be nightmares.
For example, some credit cards offer introductory interest rates that are very affordable, but they may increase after a couple months of use. If you aren’t prepared, you could suddenly find yourself facing expensive monthly payments you can’t realistically afford under the new terms.
Additionally, read the fine print on any rewards programs. In some cases you need to spend past a certain threshold within a particular amount of time for the rewards to kick in. Sometimes, the cost to utilize these programs outweighs any advantages they may have.
Don’t Close An Account To Avoid Fees
Some credit cards come with high annual fees. Some consumers open an account for a short-period of time and close it before they have to pay this money to their lender. However, this can have some serious long-term implications.
Even if you close a credit card account, this data stays on your credit report for up to 10 years. The next time you try to open a credit card, if a lenders sees you have a habit of opening and closing accounts in a short period, they may not grant you the card you want.
To avoid this, make sure to only sign up for credit cards that have annual fees you can afford. If you have a hard time paying this amount later on, you may be able to talk to your lender to see if you can pay it off over time. In some cases, a financial institution can waive this fee altogether, depending on your financial situation.
Don’t Transfer Balances Too Often
If you make it a habit of paying off one credit card with another, this can lead to a cycle of debt that is difficult to get out from. Unfortunately, this can also have a negative impact on your score and make it more difficult to qualify for new lines of credit in the future.