7 Terrible Credit Card Mistakes to Avoid

A credit card can be a wonderful thing, but only if you use it responsibly. It is crucial that you don’t let your spending get out of hand. This article will list a number of different mistakes that are all too common when it comes to credit cards. Learning about these mistakes can help you avoid a ton of big problems later on. If you want to keep your finances going strong, it is very important that you read this article over carefully.

  1. Only Paying the Minimum

You definitely don’t want to pay only the minimum amount on your credit cards each month. This will only serve to keep you in debt for longer than necessary. When you pay as much as you possibly can, you will be able to get out of debt much faster. Take the time to look at your budget and decide how much you can put towards this particular expense. It is very important, so you’ll want that to be reflected in your budget.

  • Making Late Payments

Even a single late payment on your credit card can hurt your credit rating in a very noticeable way. It also means incurring late fees, which will just put you deeper in the hole. You need to make a point of always paying what you owe on time. It should be as much of a priority at your utilities and rent or mortgage. Remember to keep track of when each payment is due as well. You should try to pay your bill online, as it is much easier and more convenient.

  • Letting People Borrow Your Credit Card

Another huge mistake that people make with their credit cards is letting people borrow them. It is never a good idea to do this, because it’s simply too risky. The last thing you want is to have a lot of additional charges on your card. The hard truth is that a lot of people who borrow money from friends and family never pay it back. This can also hurt your credit rating in a big way, so you should think twice about it.

  • Not Reading Over Your Statement

Many people don’t pay any attention whatsoever to their monthly credit card statement, but it’s always a mistake. You need to make sure that there aren’t any strange charges on your card that you did not authorize. If you are the victim of fraud, you will definitely want to know it right away. The sooner you realize this, the sooner you can put an end to it. Make sure to contact your bank right away about any charges that you didn’t make.

  • Closing Old Credit Accounts

It might make all the sense in the world to close old credit card accounts, but this can lower your credit score by quite a bit. You will just want to keep these accounts open, as it can actually help your credit. This is just one small part of proper credit utilization, which is essential for maintaining a healthy overall rating.

  • Refusing to Get a Loan to Pay Off Debt

Sometimes getting a loan is the best option you have when it comes to clearing credit card debt quickly and effectively. Short term loans can be obtained online within a matter of hours. You should take some time to explore this option before deciding what to do. A short term loan can do wonders to improve this type of situation. Make sure that you spend a decent amount of time looking for a highly reputable private lending company. This will help you get the money you need with minimal strings attached.

  • Not Reporting a Missing Card

If you find that one of your credit cards is missing and you cannot find it, you’ll need to report it as such right away. Whether the card has been stolen or just lost, you need to do this immediately. Missing credit cards often end up getting used for fraudulent purposes, so you have to keep this in mind. You need to have the card cancelled so whoever stole/finds it will not be able to make any charges.

Credit cards can help you in a lot of bad situations, but they can also cause you a lot of headaches. It is crucial that you act responsibly with all of your cards, because otherwise you will have to face the consequences. You don’t want to end up with a ton of debt that you are unable to pay back for a very long time. The more you look into these things, better prepared you are going to be. A credit card can actually help to improve your overall score, but only if you use it the right way and don’t make any of these mistakes.

What You Need to Know About Loan Origination Fees

There are usually a number of fees that come with your average loan, and it is important that you are familiar with them. These fees can make up a substantial amount of what you end up paying by the end. The origination fee is very common with personal loans, and this article will explain everything you need to know. When you take the time to get this information, you will be in a much better position as a borrower.

What is an Origination Fee?

An origination fee on a loan is meant to compensate your lender for the cost of processing the initial application. This fee can make up anywhere from one to eight percent of the principal loan amount. While some lenders don’t charge an origination fee, many of them do. While it is not a huge concern if you are only borrowing £100, it can be much more significant with larger amounts.

When You Pay

The cost of the origination fee is typically rolled into the loan, so you will essentially pay it when the full amount is due. Some lenders require you to pay this fee upfront after your application has been approved and you sign the loan agreement.

It is a good idea to see if you can pay this fee with your credit card upfront so no interest is tacked on. If you allow the fee to be rolled in with the rest of the loan, it will come with interest. This is a good way to save a little bit of money on your loan. You can actually save a fairly significant amount by doing this.

Pay Off Your Loan Quickly

If the origination fee is rolled into the bad credit loan, you will need to pay off everything you owe as quickly as possible. This will keep the total amount that you have to pay to a minimum. If you are paying it in instalments, you should try to pay as much as possible each time. This will reduce the overall amount of interest you pay on your loan.

Compare Fees

When you are going about applying for a loan online, you should make a point of comparing how much each lender charges. You should be able to find out how much this fee is on the lender’s website. This can help you save some money, so it is highly recommended that you do it. The lender will most likely have a percentage of the loan listed as the origination fee. This gives you a clear idea as to how much it is going to be for your loan.

Other Fees

Make sure that you also find out about any other fees that each lender charges before deciding on a certain one to borrow from. If you want to save as much money as possible on your loan, you’ll definitely want to do this. The fact of the matter is that some lenders charge more than others when it comes to these fees. If you cannot find this information on the lender’s site, you should contact them directly. Any reputable lender will be able to provide you with this information upon request.

Getting the Fee Waived

There is always a chance that you can get the origination fee waived entirely. Sometimes all it takes is a simple polite request over the phone or via email. It is always better to get on the phone with an actual person when you try to do this. The lender will be more inclined to waive the fee if you are borrowing a large sum of money. This is something that you will want to try regardless of however much you plan to borrow though.

Review the Loan Agreement

You want to make a point of looking over the final loan agreement as well. Before you sign this document, you need to know the terms, including any fees. The amount of the origination fee (if there is one) will be included in this agreement. Make sure that you confirm the amount and that you are okay with all of the terms. This is a good way to avoid any regrets later on, which can really come back to bite you.

An origination fee can be a pain, but there is usually way to get around it. If you must pay this fee, make sure that you don’t spend any more than you have to. This can mean everything from trying to negotiate with the lender to comparing fees. You need to do your research and find a lender that can provide you with a fair deal. Choosing the first lender you come across will likely mean paying more than necessary. Make sure that you keep all of these things in mind when trying to obtain a loan online.