Credit card mistakes:
Credit cards are useful tools if used wisely. They offer convenience, rewards and help build your credit score. However many people make costly mistakes while using them. These mistakes might seem small, but they can lead to heavy financial burdens in the long run. Here are five major credit card mistakes that you must avoid.
Many users think that paying just the “minimum amount due” is enough. But this is a trap. The remaining unpaid balance will attract high interest rates leading to huge debt over time. Always try to pay the full bill amount every month.
Paying your credit card bill after the due date invites late payment fees and hurts your credit score. A low credit score makes it difficult to get loans in the future. So always pay your bill on or before the due date.
Using your entire credit limit regularly affects your credit utilization ratio. This brings down your credit score. Experts advise using only 30-40% of your credit limit for a healthy credit profile.
ATM withdrawals using credit cards come with heavy fees and no interest-free period. Interest is charged from the very moment you withdraw the cash. Use this option only during emergencies.
Many users skip reading the terms and conditions. But annual fees, foreign transaction charges and hidden costs can surprise you later. Understanding your card’s charges can help you avoid unexpected expenses.
A credit card is a double edged sword. Use it responsibly and it can improve your financial health. Make these smart choices to avoid falling into a debt trap and to maintain a good credit score.
Also Read: CBSE Allows Class 10 Students Two Board Exams From 2026
Share
Power Cut Alert in Hyderabad Today: Here Is When and Where
School Holiday Declared Today in These 3 South Districts
