When it comes to credit cards, we have enjoyed the plethora of benefits that it has offered. At the same time, most of us have also suffered largely due to impulsive spending and bad financial planning. If you do not pay the due amount every month, the interest multiplies and you are left with far more than what you can afford. Worse of all – all of this is linked to your credit scoring. Hence, it is crucial that you avoid some of the common mistakes made while having a credit card. Here’s a list:

Paying the minimum balance
It is indeed quite tempting to be able to pay just the minimum balance when you are under some kind of financial stress. This is something that you should completely avoid! Credit card companies charge high-interest rate and despite paying the minimum balance, your interest will keep growing every month. The key is to save up as much as possible and pay off the dues instead of sticking to minimum balance payments. Experts say that based on the interest rates, you would save about 10% to 30% per year in interest as long as you repay the debt instead of minimum balance.

Using your card for everyday items
Except for extenuating circumstances, it would not be wise to use your credit card for everyday purchases. These expenses include groceries and other utility bills which you would be difficult to track at the time of repayment. You will be surprised that for a $3 grocery bill, you would end up paying $24-30 if you fail to repay it monthly.

Availing cash advances
Credit card companies deploy several marketing gimmicks. One of which is the cash advance system, where they send you checks in the mail and encourage you to use them to pay your bill or to treat yourself with something nice. However, as a user you may mostly fail to notice that this is a cash advance and the interest starts accruing the moment you avail it, unlike the usual credit card purchases where a breathing time is given. Besides, the credit card companies would not encourage you to buy any other item on your card until you make this balance zero. Therefore, as a user it is important that you literally shred the checks as soon as you receive them. Avoid the temptation because it is only going to put you in difficult times later. Remember, even this is linked to your credit score and you might end up repenting for the wrong decision.

Paying the dues late
Making late payments would certainly damage your credit score in addition to incurring late payment charges. Every credit card has a billing cycle and a due date on which it needs to be paid. Try adding a reminder on your phone or computer if you find it difficult to remember.

Forget the bonus points
Sometimes in order to avail the credit card rewards, you end up buying more than what you need. This is a dead purchase as you will end up paying additional interest than what you have earned through the bonus.