Credit cards can be good alternatives to carrying cash. Moreover, they have better benefits than debit cards, such as travel points and other perks. However, the benefits and convenience mainly depend on how one uses their credit cards. There are certain blunders that can undo all the advantages one has gained. From exceeding the spending limits to incurring additional charges, there are several mistakes to avoid when using credit cards. Here are some of the common ones. Making frequent late payments Missing a payment is one of the major mistakes that many end up committing while using credit cards. It can easily damage one’s credit score. This is because payment history is one of the most significant factors of credit rating. Nearly 30% of one’s overall score depends on how efficiently one can pay their credit card bill on time. To avoid this, set monthly reminders. Paying only the minimum balance Paying only the minimum balance on the credit card bill is a feasible solution. But it should be done less frequently, specifically when one doesn’t have enough money to pay off the entire bill. However, getting in the habit of paying only the minimum balance every month means one is carrying their credit card debt from one month to the next.

With credit cards, one can flexibly pay later for any transaction, making it a popular choice. Using a credit card means one’s purchasing power does not depend on how much money they have in their bank account. Also, many credit card companies offer reward points for specific purchases, enticing customers to use them frequently. But one needs to avoid some mistakes like the following while using a credit card to maximize its benefits: Delaying bill payment Paying credit card bills late repeatedly can affect one’s credit score. If one has a low credit score, there is a risk of one’s loans getting rejected. Employers also tend to reject those with poor credit scores. So, tracking one’s credit cycle closely and paying bills by the deadline is essential to maintaining a good credit report. Applying for multiple cards simultaneously Using multiple credit cards to split an expense may seem like a good idea, as all the cards will have more available credit. However, applying for multiple credit cards triggers multiple inquiries, affecting credit scores. Having many cards can also be a hassle because each card’s billing cycle may differ, and it may be challenging to keep track of the last date of bill payment for each.