If you use your cards responsibly and pay your balances off each month, you'll never have to pay interest. Being a conscientious credit card user can help boost your credit rating and provide you with a way to make purchases conveniently.

However, it's easy to make mistakes when you use a credit card, which can then harm your credit and put you in debt. Learn about the six major credit card mistakes and how to avoid them.

Credit cards can be a good financial tool, providing many advantages and benefits. You can use a credit card as alternative to cash to make purchases. Some credit cards offer perks like rewards, while others give you some added protection for your👍 purchases.

However, credit cards can also cause financial harm if they're not used correctly. For one, you will pay interest on any amount of debt you don't repay within the month. Here are six major credit card mistakes to avoid.

Only Paying the Minimum Balance

It's tempting to send in minimum monthly payments. However high-interest rates charged by credit card companies will add to💝 your debt. Instead, aim to send the highest payment you can afford and reduce spending in other areas to focus on paying off t൩he debt.

It may not feel like you're saving money when you increase credit card payments, but you are. You are also lowering the monthly amount you pay. You can use this saved money to accelerate debt payments, start an 澳洲幸运5官方开奖结果体彩网:emergency fund or invest in retirement. When you invest, the power of 澳洲幸运5官方开奖结果体彩网:compound interest wil⭕l work in your faꦺvor instead of against you.

Using a Credit Card for Everyday Items

Another trap to avoid is using credit cards for regular, everyday purchases. Unless you follow a monthly budget and can easily pay your credit card balance in full each month, charging non-discretionary expenses on a credit card can be dangerous. By keeping common purchases like groceries and utility bills off of your credit card balance, you'll take a major step in getting spending under control.

Consider that a $3 gallon of milk bought with a credit card will eventually turn into a $30 gallon if you don't pay off the balance at the end of each month. Aim to buy everyday items directly with monthly income with cash, check, or debit card, or have a plan to pay your credit card balance in full.

Chasing Credit Card Rewards

澳洲幸运5官方开奖结果体彩网:Credit card rewards are usually worth far less than the extra interest you'll accrue if you can't pay off the money you spend to earn those bonuses. You may, for example, receive one point for each dollar you spend, but you'll probably need to redeem 5,000 points to get a $50 discount on a plane ticket. Since the interest charged on outstanding account balances often exceeds the typical 2% bonus, it's li𓄧kely not a worthwhile trade-off.

You can use your cards more frequently once you have your debt paid off and know how to avoid new debt. As long as you 澳洲幸运5官方开奖结果体彩网:pay your balance in full and on💙ꩲ time each month, you can use credit cards for rewards to your advantage.

Taking Cash Advances

Credit card companies employ tactics like sending checks in the mail, encouraging you to use them. But these checks are treated just like cash advances. Taking a 澳洲幸运5官方开奖结果体彩网:cash advance is dangero𒁏us because you start to🔜 accrue interest immediately, unlike regular credit card purchases.

In addition, there's often no grace period and you'll be charged an automatic fee that can run as high as 6% on the amount of the advance. The best thing to do with these checks is to shred them as soon as you receive them.

Using a Credit Card to Pay Medical Bills

Medical bills can be overwhelmingly expensive, especially if you're uninsured. If you're having trouble paying your medical bills, negotiate an agreement with the hospital or other company to whom you owe money.

Don't add to your bills and stress by adding exorbitant credit card interest rates onto them. You should also go through your medical bills and make sure they are accurate and that you understand all the charges. 

Ignoring Your Debt

If you're ignoring the bills, the problem will get worse as interest adds to the debt. In addition, if you miss a payment or two, 澳洲幸运5官方开奖结果体彩网:the interest rat💛e may increase under the terms of the card agreement.

You can call card companies if you feel overwhelmed and 澳洲幸运5官方开奖结🦂果体彩网:renegotiate the terms of your ไagreement. You may be able to get the interest rate lowered, set up a payment plan, or get some of your debt forgiven. If your first call doesn't work, keep calling back because a ⭕different custo🍷mer service representative may allow you to negotiate a better deal. 

Ignoring debt can also lower your credit score and spur debt collectors into action. With unsavory tactics often empl♔oyed&🉐nbsp;in this industry, you don't want to do anything tha🥂t puts you on their radar.

Other Mistakes to Avoid

The mistakes lis♈ted above are some of among those most frequently made by consumers. But there are others.

Late Payments

Don't make late payments. Doing so will damage your 澳洲幸运5官方开奖结果体彩网:credit score and will also incur late payment charges on your account. Your credit cards will likely have a regular due date every month—say, the 15th of each month—and it rarely deviates. So it's important to know when your bill is due. If you hav♌e trouble remembering when your payment is due, try adding a reminder on your phone or computer, or circling the dates on a calendar that's easily accessible.

Maxing Out the Credit Card Credit Line

If you don't have the money to make payments, you shouldn't be using the credit card—and you shouldn't be maxing it out. Remember, if worse comes to worst, credit card issuers can also charge 澳洲幸运5官方开奖结果体彩网:over-limit fees to those who opt-in to exceed their credit limits.

Not Understanding Terms of the Account🌄 Agreement

Banks and credit cards supply the terms and conditions of specific cards at the time the application is completed and when the card is issued. It's important to know what these terms and conditions are before you use the card. Doing so will help you have a better handle on what's expected of you from the credit card issuer, and it will also help you manage your spending habits better.

Frequently Asked Questions (FAQs)

The Bottom Line

Cleaning up credit card debt takes time, but you can avoid common credit card mistakes that can slow your progress. Credit cards can be helpful and convenient financial tools once you overcome debt an🍌d learn to use them sensibly and responsibly. Avoiding these common mistakes can help you use your credit cards to your advantage.