Though they are not extremely confusing products, credit cards can be extremely misunderstood. There is a lot of misinformation out there on them and a lot of the facts are further misinterpreted.
All of this can lead to serious headaches for credit card users. If you use your credit card in the wrong way or just don’t understand everything about your own, you can find yourself in trouble, oftentimes very serious trouble.
Basically, credit cards often lead to frustration. And we all know that frustration is no good. No one wants to be bummed out or worried, especially about something that can be as beneficial as a credit card.
And with that we present seven solutions to common credit card headaches. These are seven of the most common credit card complaints along with simple solutions on how to avoid or correct these frustrating issues.
1. Annual Fees
I know of a lot of people who are frustrated by the annual fees associated with credit cards. You spend enough money with your credit card already (and give enough to the company in form of interest) so why should you pay anymore? The simple fact of the matter is that nearly all credit cards in this day and age come with an annual fee.
Fortunately, it is possible to find a credit card without an annual fee if you look hard enough.
2. Foreign Transaction Fees
Many people sign up for rewards cards because they believe that a rewards card actually pays them to use it. While this is true in practice, people are often hit with a foreign transaction fee when using such a card.
The best solution to this common credit card headache is to first call your bank/credit card company and ask for the fee to be waived. Another good bet, especially if you travel a lot, is to select a card without foreign transaction fees.
3. High Interest Rates
Another common credit card headache is high interest rates. Most credit cards actually have interest rates of 10% to 20% APR, some even higher. As you might suspect, this accumulates very quickly.
If you have good credit, then your best solution to this credit card headache is to search for a low-interest rate credit card. There are many of these available.
4. Rejected Applications
A lot of people are unaware that credit card applications can even be rejected. This makes instances of rejection even more difficult to take.
A banks rejection of your credit card application is not always final. Most people do not realize that you can ask them to reconsider your application. Sometimes on the second time around you are approved.
5. Can’t Redeem Rewards
Unfortunately, some credit card rewards programs are credit card headaches in and of themselves. Many of these programs are extremely hard to figure out and decipher.
The easiest way to solve this common program is to learn more about your specific credit card’s rewards program. Doing this will help you figure out what to do more easily as well as allow you to get the biggest bang for your buck and earn back the most valuable rewards possible.
Another solution is to give up a rewards credit card altogether. Many people are much happier and better off with a simple old cash back credit card.
6. Poor Customer Service
It’s just a fact of life that many banks and credit card providers offer less than stellar customer service. Few things in life cause more of a headache than waiting forever to talk to a customer service representative.
A good bet is to contact your bank or your credit card provider through their website. Many of these websites offer a secure means to contact the establishment. And you’ll receive a response much faster.
If this does nothing for you, consider opting for another bank, credit union, or credit card company. Many credit card companies these days are highlighting their superior customer service.
7. Credit Card Debt
Credit card debt is one of the worst parts about having a credit card. For many people, it is extremely difficult to stay out of. Staying out of debt can certainly be very difficult.
In fact, credit card debt can get to the point where it feels like you will never be able to pay it off. It’s actually one of the primary reasons that people go way down deep into debt in the first place. It can feel unrelenting, like it will never go away.
There are a whole lot of ways to reduce or get out of credit card debt. However, the best option is to just avoid it altogether. Avoiding credit card debt can be as simple as creating a better budget plan and changing your spending habits or as extreme as getting rid of a credit card altogether and opting for a prepaid card or a debit card.
Some people also opt to find a card with a 0% APR balance transfer option. This can be a great tool to reduce your overall credit card debt.
There is absolutely no denying that credit cards are beneficial. There is also no denying that they can get you into heaps of trouble and cause quite a few headaches. They are simply very confusing at times and are often misused by people.
Understanding the most common credit card headaches is the key to avoiding these problems. Having an idea of how they work and what the solutions are to common credit card problems can help you avoid credit card debt and the related frustration.
If you liked this blog post or found it informative and helpful, chances are that you will also like our past post on 5 financial decisions that just don’t make sense.