When using credit cards, many people will find that they have worked hard to accumulate the credit limit, they do not know why they were blocked by derating. And many people think that their credit is good, but the bank does not increase the credit limit. In fact, this is just because we usually have some misunderstandings when using cards, but many people don’t know that using credit cards this way is actually wrong.
Mistake 1: There is no annual fee as long as the credit card is not activated
Many credit cards are free of annual fees, but for some special credit cards and custom credit cards, they are rigid annual fees. Even if they are not activated, the annual fees will be charged, and many cardholders will inadvertently cause credit card overdue. This is the biggest credit card damage to cardholders.
Mistake 2: The more you spend, the more points you get
Credit card points can be redeemed for gifts, so many cardholders use credit cards for whatever they spend. However, different banks have different points calculation rules. Many credit card online purchases are not as good as calculating points. Even if they buy online many times, there are no points. There are also some public welfare or buying a house, car, hospital payment, etc., so points are not calculated. Cardholders are advised to understand the points rules of their credit cards so that they can better use credit cards.
Mistake 3: Credit cards are different from debit cards
Credit cards and debit cards are different. If you want to use a credit card to withdraw cash, you need to pay a fee and interest. Some friends have to pay an extra amount of money when they repay and want to withdraw the money. Once such a problem occurs, it is recommended that you can use this money to pay the next month’s bill, otherwise you will be charged a commission fee for cash withdrawal.
Mistake 4: Credit card installments are interest-free but not free of handling fees
Many people use credit cards to choose installments. Although banks say that credit card interest-free installments, this only means that no interest is charged, but they charge a handling fee, so even interest-free installments will still have additional costs.
Mistake 5: Prepayment can be waived
During the installment period, we have to pay a handling fee. There are two options. One is a one-time payment. The other is that the handling fee is also paid monthly with the installment bill. Some friends want to repay in advance when the funds are sufficient, so that they can save months of processing fees, but in fact, it is not, as long as you choose the installment, regardless of whether so many installments will be the beginning The handling fee will not be charged for the remaining months due to early repayment.
Mistake 6: Since it’s overdue, it doesn’t matter if it’s overdue for a few days
Since the credit card is overdue at the expiry meeting, there will be no difference if it is overdue for a few days. Many people think so, but it is actually wrong. Because credit card overdue will be based on the length of the overdue period to calculate the severity. If it is more than 30 days, it is a serious overdue, and overdue will result in a late payment.