Common mistakes made while choosing credit cards


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most 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. 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

Updated: September 27, 2018

The content is accurate at the time of publication and is subject to change.

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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
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:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!