David Morey 
Credit cards can be an incredibly useful financial tool – if you know how to use them. Whether you’re looking to build up your credit history or save money on everyday purchases, credit cards offer plenty of benefits. That said, if they aren’t used responsibly, they can lead to serious financial trouble. To help you avoid the pitfalls of owning a credit card, we’ve compiled a list of the top three mistakes to avoid. Check them out below.
Signing Up for the First Credit Card You Find
Whether offered by your local bank or your favourite clothing store, it can be tempting to sign up for the first credit card you come across.
But when it comes to choosing the right credit card for you, always prioritize your finances over convenience. Not all credit cards are created equal. From interest rates to monthly fees to rewards offers, a credit card is simply to consider carefully. Do some research, compare available cards, and then decide which one makes the most sense for you.
Only Paying the Minimum Monthly Amount
Many people only pay off the minimum monthly amount on their credit cards without realizing the consequences. If you fall into this trap, your leftover payments are likely to pile up quickly, and they will be subject to a very high interest rate.
So even if paying off the minimum amount leaves you with more money in your pocket right now, it’s going to cost you more down the line. Therefore, credit card owners should strive to pay in full as much as possible. If you are ultimately unable to make full payments each month, then be sure you are meeting the minimum requirement. Failing to meet the minimum payment can result in late fees. It can also lead to your lender reporting a missed payment to credit reporting agencies, which could affect your credit score.
Forgetting to Check Your Monthly Statements
Did you forget to make your credit card payment last minute? We’ve all been there. We don’t blame you for being human, but if you get into the habit of repeatedly missing payments, you’re going to be in for a nasty shock. One of the best ways to ensure you make your payment while monitoring your spending is by checking your monthly statements. Your financial institution will create a monthly credit card statement, which is typically available via online banking (although it may also be mailed to you each month). Start checking your statement every month, and whenever you check it, make a point of paying it. You could set a reminder on your phone or laptop, or pick one day each month to make all your payments. Use whatever system works best for you, just don’t forget to check your credit card statements regularly.
