Credit cards can be a handy tool for building credit, making purchases, and even earning rewards. But if you're not careful, they can also lead to a big financial mess. Here are some common credit card blunders to avoid:
1. Minimum Transaction Mayhem: Some retailers have minimum average monthly spending requirements to use a credit card. This can tempt you to add unnecessary items to your basket just to meet that limit and potentially lead to overspending.
2. BOGO Blues: Buy-one-get-one-free offers can be a great deal, but only if you actually need both items. Don't get caught up in the excitement and end up with something you won't use just to snag the "free" item.
3. Missing Payments: This is a big one. Late payments can seriously damage your
credit score and hit you with penalty fees. Failure to pay the minimum
amount due, as stated in the monthly bill, is considered a default and
adversely affects the credit score. It's important to prioritise timely payments to
maintain a positive credit history.
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