Whether it is our regular credit card or the ones that have no annual fee, we tend to make some mistakes that can easily be avoided but we often become careless and end up making those errors anyway.
Settling For The Minimum Payment
We did discuss this point in our previous post and we cannot stress enough on the fact that settling for the minimum payment every month is not going to be in your best interest. Some of us do believe that making the minimum payment on our credit card for no annual fee is the best way to avoid any debts but this is not the case.
When you choose to pay of all your bills on your credit card every month, you can easily avoid paying any interest for fee. Do remember that whenever you carry any balance on your card you do incur an interest.
Experts are of the opinion that whether you are using a regular credit card or credit card with no annual fee, it is always better to pay off the balance in full every month if you are capable of doing so. This way you are also able to keep your card absolutely “clean” and you do not have to worry about incurring any interest on your purchases. You will also have to make sure that you spend more on the clean credit card rather than any other financial instrument that may have any due balance on it. This is because in the former case you will be able to easily pay off your dues in full every month.
It is always advised never to make non-essential purchases when you have a credit card debt on your head. It is important that you are disciplined enough to limit your spending when you are using a credit card. If you have cash on you or if you carry a debit card, it is always better to use them as much as you can for any of your purchases.
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