Having a credit card can be a great ally in daily life. It allows you to organize purchases, access exclusive benefits, and have greater financial flexibility. However, what many people don't know is that its misuse can become a serious problem.
It's not just about paying higher interest rates. Irresponsible use of a card can lead to consequences such as loss of benefits, a damaged credit history, and even bankruptcy. To avoid this scenario, it's essential to know the most frequent mistakes and how to prevent them.
The 5 most common mistakes
One of the most common mistakes is being late on credit card payments. When this happens, not only do late fees appear, but interest rates also rise and promotional benefits such as balance transfers are lost. Institutions like President's Choice Financial may even increase the rate if they detect irregularities in the history, even if the delay was on a personal or auto loan.
Another mistake is paying only the minimum each month. Although at first glance it seems like a convenient solution, in reality it extends the debt and forces you to pay much more in interest. That's why it's always recommended to choose cards with 0% interest periods whenever possible.
It's also common not to read the fine print of promotions. Many offers seem irresistible, but they include hidden conditions with high rates. Before signing any contract, the wisest thing is to carefully review the conditions to avoid unpleasant surprises.
Exceeding the credit limit is another very dangerous practice. Some banks allow you to keep using the card even after surpassing the limit, but this apparent advantage becomes a costly problem in the long run. Controlling spending is essential to avoid additional charges.
Finally, requesting cash advances is usually one of the most expensive ways to use a card. These advances don't offer a grace period and apply higher rates than regular purchases. In addition, interest starts accruing from the first day, which makes the final cost very high.
What Americans prefer
Despite these risks, credit cards remain very popular in the United States. Various satisfaction surveys rank Chase Bank, part of JP Morgan Chase, as customers' favorite thanks to its ease of digital use and its rewards programs.
As for specific products, the Chase Freedom Unlimited card has become consumers' favorite. It offers 1.5% cashback on all purchases, doesn't charge an annual fee, and allows access to bonuses for initial spending. This combination of advantages makes it especially attractive compared to the competition.
Users value both the immediate benefits and the security of having a recognized bank. However, even with an outstanding card, the key is to use it responsibly. Avoiding the most common mistakes is the best way to protect personal finances and enjoy all its advantages.