7 critical mistakes to avoid when choosing a credit card

financialexpress.com:

Credit cards have become part and parcel of our daily financial habits. We use credit cards every day for making transactions as it is not only easy but convenient to track our expenses. However, it becomes important for us to opt for cards that are valuable for us and more importantly those which are helping us save money.

However, selecting a credit card can be a daunting task, given the options available in the market. Often there are a couple of things you must not do when you decide to apply for a credit card. It is important to go through your spending habits and accordingly select a card that works like a friend for you. Here are some mistakes you must definitely not make.

One of the biggest mistakes people make is choosing a credit card without considering their spending habits. Different credit cards offer various rewards and benefits tailored to specific spending categories such as dining, travel, groceries, or fuel. Evaluate your spending patterns over the past few months to understand where you spend the most. Select a credit card that aligns with your spending habits to maximize rewards and benefits.

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Credit cards often come with annual fees, which can vary significantly depending on the card issuer and the benefits offered. While some cards offer premium benefits like airport lounge access and concierge services, they may come with higher annual fees. Consider your usage frequency and the value you derive from these benefits to justify paying the annual fee. Alternatively, opt for a no-annual-fee or low-annual-fee card if you prefer to minimize costs.

Credit card interest rates can be high especially when you delay paying