Credit cards can either make your life smooth or can damage your financial reputation forever. It all boils down to the way you use these cards and the type of transactions you get involved in. So you need to follow specific measures to prevent problems and mistakes from occurring. Hence, here are some mistakes to avoid with credit card cash advances.
1. Delay in Payment
Another important aspect of credit transactions is the credit score. The credit score defines your credit system and decides whether or not you will be receiving credit. So you need to keep a good credit score by making payments on time and in the right amounts. Matters such as delay in payments or missing a payment can go a long way in reducing your credit score altogether.
2. Insufficient Payments
Credit card companies might have specified the amount you require to pay every month depending upon the terms of the arrangement. Making payments which are lesser than the required amount can result in low credit scores and also you will end up paying more. Inadequate or insufficient payments can mean that you are about to enter a financial loss. Hence, make the appropriate payments on time.
3. Availing Cash Advances
This is a colossal mistake which one should never think of committing. Cash advances come with higher rates of interest, and individual credit card companies do not offer a grace period. So the moment you make a cash advance, you might receive notifications suggesting the amount of interest rates, which will begin to pile up one after the other. Hence avoid cash advances at any cost.
4. Uncalculated Usage
One should understand the importance and implications which arise from the usage of credit cards. One must draft out a plan every month regarding the number of times you will be using the credit card. Utilising the card for every other purpose in life will leave in debt as you will spend a long time paying up those rates of interest. Hence do not always rely on your credit card.
5. Avoiding Statements
Just like how nobody reads the terms and conditions for numerous websites, credit card statements are another thing which people avoid. These statements consist of all your transactions and suitable charges that may have arisen through such usage. Fraudulent transactions and errors may appear, and the only way to avoid them is by reading your statement.
6. Ignoring Rewards
Although we do not understand why one would do such a thing, it is quite common for people to ignore various benefits and rewards provided by credit card companies. Rewards can be in the form of credit score, travelling benefits and other such benefits. Hence utilise such rewards.