Credit Card Mistakes You Might Be Making

by contentwriter

Author: Mike Ross

A credit card is a great financial tool, but they also come with several pitfalls. For example, you might accidentally spend more than you planned or miss payments. Either way, you can easily get into trouble without knowing it. 

Also, if you’ve already paid too much, it can be extremely difficult to get back on track. That is why you should always check your spending history before paying your bill. 

In this article, I will explain some credit card mistakes you might be making – and how to fix them.

Make Minimum Payment

While you should always make at least the minimum payment on credit card expenditures, doing so for an extended time might have severe implications. Suppose you do not pay your bills in full, you may accrue extra interest charges over time, leading to future financial problems. In fact, failing to pay your payment at the appropriate time might lengthen the time it takes to pay off your debt by months or even years.


Review your Billing Statement

Forgetting to review your billing bills may not appear to be a significant oversight, but, it may quickly escalate into a costly problem if ignored. You need to check for unauthorized charges and scrutinize your statement for inaccuracies. 

Your monthly statement is also an excellent source of new or updated information about your credit card conditions. Though it may appear to be just one more thing to do each month, examining your billing statement might be critical in maintaining your financial status.

Credit Card Applications

A credit check is needed to apply for a new credit card. The more the number of verification done on your credit status in a short period of time, the riskier your credit status becomes. This is because some points are deducted each time a check is conducted on your account. 


Ignoring APRs

Let us be honest, after signing up for a credit card, do you read the lengthy cardmember agreement? Probably not. 

However, you must read and understand crucial account terms that may result in extra charges or fees. Understanding your account operations will help you better control your spending habits. 

Here is a brief overview of key phrases to keep an eye out for:

  • Annual Fee: A fee charged by your credit card issuer once a year to keep your card account open.
  • Purchase APR: The interest rate paid on purchases when you have a credit card balance.
  • Balance Transfer APR: The interest rate charged by an issuer on debt transferred from another loan or credit card to a credit card.
  • Late Pay Fees: What you may be charged if you do not pay your credit card account’s due on time.

Payments Forgotten

Missed or late payments can drastically affect your credit score. According to statistics, skipping a payment can reduce your credit score by about 30 points. 

To keep up with your payments calendar, you can set a reminder to guarantee you never miss a payment while protecting your credit score.

The more you study and understand your credit card, the easier it will be to prevent these blunders and develop strong credit abilities in the future.


You must use and manage your credit card wisely. Different card issuers offer different terms of use, rewards, and cashback. While rewards and cashback are great, you should not forget the wrong sides. Use your credit card correctly, read the terms of use carefully, avoid expensive purchases, and do not forget to pay your bills when due. 


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