1. Making only minimum payments Doing this stands the investment pyramid on its point. The magic of compounding is extremely powerful and works both directions. When we make minimum payments that magic works for the credit card company and they keep more of our money. If we can't pay our credit cards in full every month, we shouldn't get one.
2. Paying to own one.
There are many credit cards that offer no annual fees. If our credit isn't good enough to qualify for one, we shouldn't get one. We should spend time repairing our credit, until it's good enough to get a free card.
3. Taking out a loan or cash advance.
The interest rates and fees for these are exorbitant. We would be better off borrowing from almost any other lender at a much lower rate.
4. Not paying on time.
This should never happen. We can pay so many different ways in this age of technology. I like to pay online and print my receipt. We can pick the day drafts are withdrawn from our checkbook. If you have a tendency to pay late, set up repeating monthly payments. Making late payments will lower credit scores and increase future loan costs also. Finwiz.
No comments:
Post a Comment