8 Common Credit Card Mistakes And Tips For Avoiding Them

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Making Late Payments

Payment history is a major credit score element. Missed payments can lower your credit score, and it may take months to rebuild it.

Making Only Minimum Payments Monthly

While making minimum payments is important to avoid incurring late fees, it won’t allow you to avoid interest charges.

Misunderstanding Credit Card Interest

Credit cards are about interest, but how it's charged might be complicated.

Ignoring Your Credit Card Agreement

You should know fees, credit limits, and other conditions in credit card agreements.

Neglecting Your Monthly Statement

Reading your monthly statement may seem tedious, but it's essential to managing your credit card account.

Getting Close to Your Credit Limit

Your credit limit is your card's charge limit. A greater credit use percentage can damage your credit score if you approach close to your limit.

Applying for Multiple Credit Cards at Once

Lenders perform hard inquiries when you apply for a new credit card, lowering your credit score.

Canceling Your Card on a Whim

Credit card issuers may compel you to pay off your balance with interest if you cancel.

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