Credit cards are a convenient financial tool, but mismanagement can lead to debt, fees, and stress. Here’s a guide to common mistakes and practical solutions.

1. Overspending Beyond Your Limit

· Mistake: Treating your credit card as extra cash, leading to purchases you can’t repay

· Consequence: High interest charges and potential credit score damage

· How to Avoid: Set a monthly spending limit and track expenses diligently

2. Missing Payment Deadlines

· Mistake: Paying only the minimum amount or delaying full payments

· Consequence: Accumulating interest, late fees, and lower credit score

· How to Avoid: Enable auto-pay for full amounts and set reminders for due dates

3. Ignoring Reward Programs

· Mistake: Using cards without maximizing rewards, cashback, or loyalty points

· Consequence: Losing out on benefits that can offset expenses

· How to Avoid: Choose cards aligned with your spending patterns and redeem rewards regularly

4. Applying for Too Many Cards

· Mistake: Opening multiple credit cards in a short period

· Consequence: Multiple hard inquiries lowering your credit score

· How to Avoid: Maintain only the cards you actively use and space out applications

5. Falling for High-Interest Schemes

· Mistake: Accepting balance transfers or EMI offers without checking rates

· Consequence: Paying hidden fees and excessive interest

· How to Avoid: Read the fine print, compare offers, and calculate total repayment

6. Not Monitoring Statements

· Mistake: Ignoring monthly statements and suspicious charges

· Consequence: Potential fraud going unnoticed

· How to Avoid: Regularly review statements, enable SMS/email alerts, and report discrepancies immediately

7. Final Takeaway

Credit cards are powerful tools if used wisely. Avoid overspending, missing payments, ignoring rewards, and neglecting statements. Smart usage can boost your credit score, provide financial flexibility, and earn rewards, while careless use can drain your finances quickly.

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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G GOWTHAM

29/11/2025 12:30 PM