Mistakes people make while choosing credit cards

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com 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. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Mistakes people make while choosing credit cards

Mistakes people make while choosing credit cards

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

Choosing credit cards is a trickier deal than most people expect to be. This is because there are a lot of changing factors that influence the credit card customers in the spur of the moment. Most credit card customers do not think about the long term when choosing credit cards, and are instead worried about short term gains.

Looking at the reward programs more than the interest rate

Most credit card customers choose credit cards based on the rewards on offer. It is not uncommon to find customers accepting a card with 20% APR and cash back offer, in favor of a card with 13% APR and no cash back. This is a good deal for those customers who pay off their monthly bills in full before the due date. For those credit card customers who have a revolving debt every month, this is a recipe for disaster as the interest will constantly be building up and would be far more than the savings made on the cash back offer.

Trying to use the discount rewards on credit cards

Many credit card customers give a lot of importance to the discounts they would be getting with the new credit card account. However, they should look at it as a marketing strategy more than a reward. Often these discounts will make customers spend more in order to avail them, which isn't what they would have expected when choosing the credit card.

Not considering final APR on balance transfer cards

A lot of credit card customers need balance transfer for some relief from the accumulating high interests on their outstanding dues. Many of them only look at the introductory rate and promotional period when choosing the credit card. For example, customers are more than willing to accept a card which offers 0% APR for 18 months. However, credit card customers do not consider the fact that after the 18 months, the interest rate could rise steeply to 25% which is a lot more than their current credit card's APR.

Ignoring the fine print

Not checking out all the details of the card like fees, APR terms, introductory periods and reward limits, mentioned usually in fine print is a grave mistake, because these terms undo the rewards that the customers are expecting from the card.

Lower credit limit

Lower credit limit allows customers not to go overboard. But at the same time reducing their own credit line adversely affects their credit rating too and also chances of getting slapped with overdraft fees.

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:

Related Research:

Citi Premier® Card – A World Elite Mastercard Travel Credit Card

Citi Premier® Card – A World Elite Mastercard Travel Credit Card

Posted: February 10, 2021

Citi, a Credit-Land.com advertising partner, offers the Citi Premier® Card, which gives elevated ThankYou points for your travel expenses and, with the recent update of the rewards program, for purchases at restaurants, supermarkets, and… Continue reading

Discover it® Miles Review: Turn Miles Into Travel Experiences or Cash

Discover it® Miles Review: Turn Miles Into Travel Experiences or Cash

Posted: February 10, 2021

Many travel credit cards come with tempting perks, requiring some effort bonuses, a complicated rewards structure, and steep annual fees. The Discover it® Miles is probably the best Discover card for travel, especially if you do not travel… Continue reading

Top 5 Secured Credit Cards: October 2021 – Experts’ Choice

Top 5 Secured Credit Cards: October 2021 – Experts’ Choice

Posted: October 22, 2020

The COVID-19 pandemic has made significant changes not only in people’s lives and their financial standing but also in the entire financial sector of the U.S. We have collected the best secured card offers from our partners so that you can… 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!