19 Common Credit Card Mistakes and Tips for Avoiding Them

Credit cards, when used responsibly, can enhance your financial life, allowing you to build your credit score, earn rewards, and more. Unfortunately, if you’re not careful and make credit card mistakes, using a credit card can have the opposite effect on your financial life.

Credit Card Mistakes to Avoid

Making Late Payments

Payment history is one of the most significant factors in determining your credit score. The more payments you miss, the more your credit score could go down, and it could take a fair amount of time to repair your credit.

Making Only Minimum Payments Monthly

By only making the minimum payment, you’ll end up paying a high amount of interest (assuming you’re not using a card in its 0% introductory period).

Misunderstanding Credit Card Interest

A credit card can have a few different annual percentage rates (APR) depending on the type of transaction, including on purchases, cash advances, and balance transfers.

Ignoring Your Credit Card Agreement

Credit card agreements contain important details like fees, your credit limit, and other important terms you’ll benefit from knowing. Ignoring credit card terms could lead to nasty surprises, like fees you didn’t anticipate paying.

Swipe up to learn more!