10 Common Mistakes In Holding Credit Cards

1) Overspending
Credit cards are great tools in building credit but if not used carefully, credit cards can also be a trap to uncontrolled spending. Since credit cards are easy to carry and easy to use, it’s also easy to lose control of one’s spending. Thus, self-discipline and a strong sense of responsibility must be practiced by all credit card holders.

2) Taking out cash
Credit cards today can also be used as debit cards. Many credit card holders do not realize that each time they take out cash from their credit card, they are instantly charged with interest. If you need cash, don’t take it out from your credit card.

3) Paying only the minimum
Submitting only the minimum payment from your balance is a very bad habit. As long as your balance is not paid in full, the balance is carried over for the next billing period and the interest accumulates.

4) Being late or missing payment
Being late or missing your credit card payments leaves a card holder with more debts that he already has. Late penalty charges and high interest rates can badly hurt a person’s credit.

5) Not shredding credit card receipts
Identity thieves look into trash bins in search of used credit card receipts. These thieves make use of any personal information they can get such as your bank account number so they can use it against you. Before throwing away credit card receipts or billing statements, make sure that they are completely shredded.

6) Not checking your credit card statement
Some credit card holders overlook the importance of reviewing credit card bills for accuracy. You could be paying for charges you never make if you don’t make sure that your billing statement is correct.

7) Throwing away expired credit cards
When you receive your new card, make sure that you properly dispose the old one. Cutting them in half isn’t enough, as identity thieves can still get details out of it. Instead, cut them into small pieces and do not throw them in just one garbage bin.

8 ) Applying for a very large credit
A large credit gives you more privilege to spend big on your account. If your monthly income isn’t suffice to pay for such a large credit, it would be better to settle for a credit card with a lower credit limit.

9) Applying to different credit card companies at once
Submitting too many credit card applications to different companies can be bad for your credit score. Apply only to a credit card company you’re seriously considering.

10) Maximizing your credit
If you’re using your credit limit to the full, that’s a clear sign that you’re spending too much on your credit card. It is advised that a healthy spending should not go beyond 30% of your credit limit.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
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