3 Credit Card Red Flags to Always Avoid

Avoid these red flags when you are looking to sign-up for a new credit card

Tunji Onigbanjo

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Photo by Zachary Keimig on Unsplash

Choosing the right credit card for yourself can be an exciting but difficult process. Let’s say you have taken steps to evaluate your spending habits and have determined the type of credit card that would allow you to gain the most rewards. Before you apply for a specific credit card, make sure to always avoid the following three red flags:

1. High-Interest Rates

2. Low Credit Limit

3. Partial Credit Reporting

1. High-Interest Rates

Even though you will be a responsible user of credit and pay off the full statement balance of your credit card every month, you should be aware of the interest rate charged by your credit card. According to The Balance, the average credit card interest rate is 20.45% as of January 2022. When it comes to that credit card you want, make sure you have read through multiple reviews to get an idea of the interest rate that will come with the card once you apply and are approved. Suppose a credit card has clear signs of interest rates close to or greater than 30%. In that case, you should always be aware of any predatory practices the issuer of that credit card may be involved in, such as having a…

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