5 Common Credit Card Mistakes When Applying For Your First Credit Card
Now these days, credit cards have become a lifestyle necessity for the majority of the people as this financial tool enables you to make purchases little easier. But be careful because this little plastic card may cause serious issues if you don’t manage it carefully. Mismanagement of credit cards will only end up getting into debts. There are numerous mistakes that many credit card users tend to commit when using credit cards. To make sure you don’t, avoid these 5 common mistakes that often people make when applying for their first credit card.
Applying for a Credit Card that Doesn’t Suit Your Needs
There are several reasons to apply for credit card in UAE. The credit card that is best for you will solely depend on your reason for opening one.
However, one of the most common credit cards mistakes people make when they decide that they want a credit card is to simply apply for the first credit card they come across. However, each and every credit card comes with its own features and benefits, so it is really very important to identify what will match your needs the most.
Are you a frequent traveler? It would be meaningless to opt for a credit card that doesn’t offer great travel rewards especially when there are numerous travel credit cards out there. Or maybe you required a business card to manage your business expense then it would be completely worthless to opt for a basic credit card. Make sure you choose the right credit card as per your need so that you can make the most of it.
Applying for Multiple Credit Cards
By applying for multiple credit cards, people mean to get a high credit limit & of course a plethora of benefits offered by different kind of credit cards. But the truth is that the more credit cards you will have, the higher chances you will have of getting into a huge debt. In addition to this, having multiple credit cards will also impact your credit score negatively and your ability to borrow money from the bank because the lenders might raise the question on your financial status.
Failing to Read the Fine Print
This is another common mistake that people often make. It is very crucial to know what you are getting into before you apply for any credit card. Don’t just apply for the first credit card that you see in your mailbox, instead of that look for the right credit card that can meet your needs in an appropriate manner. Make sure you consider annual fees, interest rates, & several rewards programs. In addition to this, it is also important to do some research on how easy or tough is to get a specific card. What is the credit card eligibility in UAE for that particular card? Knowing your credit card terms can save you from paying unexpected costs or make unwanted mistakes.
Applying for a Credit Card that Doesn’t Fit Your Credit Score
People often apply for their desired credit card without even considering whether or not they qualify for it. Please note that each credit card application is considered a pull on your credit card report. Therefore, it can affect your credit score temporarily even if your credit card application is not approved. So, it is quite important to apply for a credit card that fit your credit score.
Applying Before Paying Off The Bills
Make sure you should pay off all your credit card bills before you fill out the credit card application. And if that is not feasible, try to pay off as much as you can. A major factor of consideration when banks look at your credit report is your ‘debt to credit ratio’. The more debt you have, the lower the credit score you will have.
So, if you want to make the most of your credit card then make sure you apply for the right credit card as per your needs, and then brush up how to use it responsibly. And yes keep these 5 common credit card mistakes in mind while applying for your first credit card.