Happy Saturday! Credit cards are a great way to build your credit and pay for expenses. Yet, when misused, they can severely damage your credit score. You might also end up paying a lot of extra money. Here are the 5 most common credit card mistakes. Learn how you can avoid them moving forward. Keep reading for all the deets.

five credit mistakes you should never make

A credit card is a great asset. However, incorrect use can cost you a lot of unnecessary money. It’s not hard to get into the habit of using your credit card correctly. As a result, you can save money while building your credit.

Carrying a balance month to month

Carrying a month-to-month balance hurts your credit score and will cost you money. If you carry a balance, you’ll have a higher credit utilization rate. This rate is the amount of debt you have compared to your available credit. Carrying a balance can get expensive due to interest charges.

Only making minimum payments

While you should always pay the minimum payment it is not advised to only pay the minimum due. Not paying your bill in full can lead you to fall in debt and rack up interest charges. Plus just paying the minimum can add months or years to pay off your debt. Have a payment plan in place before you take on a bigger expense.

Missing a payment

Late or missed payments can seriously hurt your credit score if you’re more than 30 days past due. Set up autopay to guarantee payments are always made on time.

Neglecting to review your billing statement

It’s important to check that the transactions listed on your bill are accurate. This ensures you can take early action against fraudsters or reporting errors. It’s a good idea to check your transactions a few times each week to verify everything is ok.

Taking out a cash advance

One of the riskiest things to do with your credit card is to take out a cash advance. Interest starts accruing on the amount of cash you withdraw immediately. There’s no grace period like regular purchases. Additionally, you’ll incur a cash advance fee.

Credit is necessary in life. There are many ways to protect and use your credit correctly. Always research before applying for credit cards. This way, you can find the best one to fit your finances and lifestyle.

–Chantel Keona