Common mistakes made while choosing credit cards

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Common mistakes made while choosing credit cards

Common mistakes made while choosing credit cards

Add to Favorites:

There are plenty of options available in the credit card market. Sometimes, a wealth of options could easily lead one to make mistakes. Some of these mistakes in case of credit cards could prove extremely expensive as well. A lot of customers don`t really do the full research required to choose the right credit card. Here are the most common mistakes made while choosing credit cards.

The wrong kind of rewards

Some rewards are indeed, rewarding. Others are just a marketing strategy which tempt the card holders into greater expenses and drag them into debt. Rewards like cash back, offer a huge benefit. But card holders also go for credit cards which offer rewards in the form of milestone discounts and conditional opening bonuses, which lead them into spending more than what is required. Choosing cards with such rewards could prove detrimental to your financial health in the long term.

Ignoring the final APR of a balance transfer

This is one of the biggest mistakes that one can make while choosing a credit card. A lot of balance transfer credit cards come with an introductory balance transfer offer, where the APR is 0% or is very low, hovering around 2 - 3 % during the first few months. A lot of card holders are excited about this offer and opt for it. However, it would be a big mistake to ignore the final APR of the credit card, which will come into effect after the introductory period. Sometimes, this could be exceptionally high and could lead to losing more money on interests than you could have saved through the introductory offer. Moreover, card holders have to be calculative about whether they can pay off their outstanding debts before the final APR comes into effect after the introductory period.

Not fully understanding fine print

Some card holders do the vital mistake of not reading fine print. It is a huge blunder given that most of the important details of the credit card are listed out in the fine print by card issuers. For example, a credit card could have the hidden condition that the 0% introductory rate will be withdrawn even if the card holder makes one late payment. The rewards could have caps and expiration dates too. Not understanding the fine print could be a great mistake that should be avoided while choosing credit cards. It is imperative that one understands the terms and conditions related to interest rates, fees and rewards offered by a credit card.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products’ Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

Posted: June 21, 2017

Whether you are married or not, we all agree that marriage is incredibly important for a person. It signifies the beginning of two people as a team, as a family, of a long commitment. It is a newly born union and the sign of your choice, ... Continue reading
How to Save Money. Best Credit Card Deals and Tips.

How to Save Money. Best Credit Card Deals and Tips.

Posted: June 20, 2017

We all've been through or may find ourselves in such an emergency when money is needed immediately. Lucky you are if you have savings for unexpected expenses. If not, it's never too late to start saving money. There are different ways to ... Continue reading
How the Fed Rate Rise Impacts Credit Cards

How the Fed Rate Rise Impacts Credit Cards

Posted: June 20, 2017

Recently, the Federal Reserve hiked its benchmark rate by a quarter percentage point, as a result, you could see a rise of the interest rates on your credit cards by 0.25%. That was the first hike of the key rate in 2017 and the Fed ... Continue reading