Avoid These Common Credit Card Mistakes

Photo by Avery Evans on Unsplash

While it may be easy to take out a credit card if you’re not careful it can be costly and cost a lot of damage to your credit.

According to the Federal Reserve’s Survey of Consumer Finances, the average credit card debt of U.S. families is $6,270.

Using your credit card the right way is useful to avoid accumulating any debt and to protect your credit score.

Here are 6 tips to help you avoid common mistakes people often make with their credit cards.

1. Making Only Minimum Payments

By only paying your minimum payments, you’re increasing your balance which in turn increases the amount of interest.

Increasing your interest also increases the amount of time that you have to pay off on your credit card.

By paying more than the minimum payment you’re ensuring that you’re paying off the balance much sooner and at a much lower cost.

2. Paying Late

Missing your payment can damage your credit score and you could possibly face penalties.

Your credit card issuer can raise your interest rate which can be very costly when you’re trying to pay it off later.

You won’t see any damage to your credit card if your payment is less than 30 days, but…