Finance Globe

U.S. financial and economic topics from several finance writers.
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Don’t Make Any of These Credit Card Mistakes


Carrying a credit card is a big responsibility, as there are a variety of potential mistakes lurking around every corner.

Knowledge of these mistakes can go a long way in helping you avoid trouble, thus getting more out of your credit card and the many features it offers.

Here are six credit card mistakes to avoid at all costs:

•    Spending more than you can comfortably afford to pay back when your next bill comes due. It’s all fun and games while you’re making purchases, but your good time will come to a halt once the bill arrives.
•    Making minimum monthly payments. While it’s your right, it goes without saying that this will cost you quite a bit of money in finance charges (unless you have a zero percent introductory rate in place). As noted above, you should only spend what you can afford to pay at the end of the billing cycle.
•    Paying late. No matter how much you’re paying – even if it’s the minimum – make sure you do so on time. A late payment can result in a fee, as well as a red mark on your credit report.
•    Neglecting to review your billing statement. Don’t assume that your statement is 100 percent accurate. Instead, review it in great detail to ensure that everything is as it should be. Did a retailer charge you double? Were you slapped with a fee when you shouldn’t have been?
•    Waiting to report a stolen or lost credit card. If your credit card goes missing for any reason, even if you have reason to believe you’ll find it, it’s better to be safe than sorry. Call your issuer, let them know what happened, and request a new card.
•    Lending your card to a family member or friend. It doesn’t sound like a big deal if you trust the person, but you never know what could go wrong. You don’t want to ruin a close relationship by making this mistake.

What do you think about these credit card mistakes? Have you made one or more of these in the past? Would you add any others to the list?

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Comments 1

Frank on Friday, 29 June 2018 11:13

I would add if you aren't paying off your credit card in full every month, then you are not using your credit card correctly.

I would add if you aren't paying off your credit card in full every month, then you are not using your credit card correctly.
Friday, 03 February 2023

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