Credit cards offer great convenience for people who want to spend money on credit and pay the bill after they have received their wages. Credit cards can also be a good means of shopping online or in stores where one does not want to carry cash with them.
![Credit Card Pitfalls to Avoid](http://justwebworld.com/wp-content/uploads/2019/04/Credit-Card-Pitfalls.png)
However, it is important that we are all aware of the implications that come with the use of a credit card in our lives.
There are a number of risks that we are likely to face when using credit cards. Whether we are using interest free credit cards or cards that attract high-interest rates, we are likely to face fraud when the cards are duplicated and used without our consent.
Here are 5 common credit card pitfalls to avoid.
1] Use of credit card checks
This is a common pitfall that many people are not able to avoid. Your credit card company will occasionally send you checks on based on the strength of your credit cards. You will be tempted to cash in these checks and engage in a shopping spree.
Well, you need to know that these are just loans that are advanced to you on the strength of your credit cards and you will still have to repay these at high-interest rates. To be safe, you should be aware of the applicable interest rates so that you don’t spend the money ignorantly.
2] Do not play credit card reward games
This is another common pitfall that people will need to avoid when it comes to credit cards. For you to earn rewards and gain cash backs, you will need to spend a lot with the credit card.
This means that you will highly be indebted in the quest to earn more rewards and get cash back. It is not worth spending hundreds of dollars just for you to earn 10$ or 20$. The credit card company just wants to make a profit off you.
3] Quickly maxing out your card
This is a common temptation that you are likely to fall into when your credit card has high balances. Your credit card company will remind you of the high balances in your card in an attempt to make you spend the balance.
It is advisable that you should keep your credit card balance at just 30% or below so that you do not suffer low credit scores when the card provider compares your credit card balances and the used credit.
4] Amassing credit cards for prestige
![Privilege Credit Cards](http://justwebworld.com/wp-content/uploads/2019/04/credit-cards.png)
There are people who will be tempted to secure as many credit cards as possible, as a sign of prestige. In actual sense, you need to know that more of these cards will impact your credit rating and lead you to a life of debt.
The more cards you have, the more fees you will be charged annually. It is not an investment. You need to reevaluate the benefits you get from these cards. You can as well do away with the credit cards altogether.
5] Do not miss bill payment dates
If you are too busy to keep tabs on the due dates of your credit repayments, you would better not have credit cards in the first place. If you miss the repayment periods, it is likely that your interest rates will subsequently be increased. You will likely also have a bad credit record.
Try and be prompt in keeping credit card repayment dates for the best experience. You can also visit the websites of global credit card companies such as Visa to learn more on how to avoid common credit card pitfalls.