Credit cards are known to make your life convenient. But, they can also make your life miserable, if you remain unaware of credit card dirty secrets.
These plastic cards lets you avoid carrying large amount of cash in your pockets. You can safely & securely use them in wide range of financial transactions.
If you are using them wisely than probably you are building a good credit history. It will also help you in getting a cheaper loan at the time of need.
Today, credit cards are one of the most lucrative segments of banking industry. New offers are hitting markets every now and than to lure customers.
However, it’s important to understand those creative fees associated with your credit cards. Here are top 16 dirty secrets to know when using credit cards:
(1) Debt Addiction Secret
It is one of the hidden credit card dirty secrets that should never be ignored. Credit card companies are busy in launching new offers every week or month. It is mainly to attract debt free as well as debt ridden customers with increased credit limit.
Those who are debt ridden customers from a credit card company are often looking ways to pay off high interest debts with cheaper one.
According to February 2016 figures from Federal Reserve, total US outstanding revolving credit increased at an annual rate of 5.25% while non-revolving credit increased at a seasonally adjusted rate of 6%.
You should always try for credit card repayment option instead of getting more than one plastic cards to pay off your earlier debts.
(2) Revolving Balance Secret
it is another surprising credit card dirty secrets to understand. Revolving balance is that portion of credit card debt that is not paid at the end of a billing cycle. If a credit cardholder is paying credit card debt of around $3000 through minimum monthly installments.
Its most likely that your credit card repayment process will be completed in more than 30 years. It is mainly due to accumulated interest on your card’s outstanding balance.
You should always try to prevent revolving of your credit card spending amounts for longer period of time.
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