As a credit card owner, you have the responsibility of managing not only the way you spend, but also maintaining good credit card habits such as keeping track with the billing cycle and monitoring your monthly statement.
But not everyone is perfect, and it’s normal to have a few bad credit card practices. It may be a challenge to break these bad habits, but it’s going to be worth it to you and your bank account.
Check out these bad credit card practices and how you can tackle them:
Carrying too many cards
Studies say the average number of credit cards a customer carries is nine. However, most people only use a couple of credit cards when they go out. Having too many cards on your body is risky because, in the event of a theft, you’ll have to go through the trouble of contacting all the banks about your misfortune.
Carry only the credit cards you need and use frequently — for example, a general purpose credit card and a card for your retail purchases.
Swiping your card for everything
We understand, paying for everything with a credit card delays payment, is convenient and interest-free. However, this habit it bad as it may create unnecessary debt when you don’t have a sense of control.
Leave daily expenses and small purchases such as drugstore goods and fast food meals to cash or debit card. Credit cards are more suitable for large purchases such as furniture and vacations with their built-in consumer protection and the choice to pay over time.
Losing track of reward points
Most people struggle to keep track of their reward points because they signed up for multiple reward programs. This situation causes them to miss out on all the freebies and goodies they’re entitled to.
Try to use a reward program only. Make sure it has a streamlined system with a user-friendly tracking program. Make it a habit to check your point balance on the bank’s website.
Throwing all receipts
Many people think there’s no use in keeping sales slips, but if you’ve been overcharged or if there’s a billing problem, having the receipts will help you when you’re reviewing your credit card statement.
Keep your receipts for at least two months and compare them to your credit card statements. It can reduce the possibility of overcharging.
If these habits look familiar to you, it’s still not too late to change them. Once you get rid of these bad practices, your personal finance system will improve.
Sign up for a credit card by visiting https://www.rhbgroup.com/products-and-services/personal/cards/credit-cards.