Don't Make These 5 Credit Card Mistakes

Whether you are a new cardholder or you have been paying your card off for quite some time now, you must know the 5 major credit card mistakes so that you can avoid them. These mistakes are very costly not only in terms of money - they could tarnish your credit score as well, making you unqualified for certain loans and financial transactions when it really matters.

1. Never apply for more than three cards.
Two's a crowd, three's a company. And that holds true for credit cards as well. Two is enough. Three cards would establish your credit history. But anything more than that would signal your financial downfall for sure.

2. Don't be blinded by promotions.
Interest-free, rewards, miles, rebates, no annual fees, and fast cash advances are promotional taglines used by credit card companies to lure you into applying for them. However, most of these are introductory offerings only. After a year or so, you can kiss these things goodbye. And all that's left of you are credit card debts that are up to your neck high.

3. Never make late payments.
One day late could mean hundreds of dollars in charges for you. If you're going to pay for your credit card bill anyway, better do it days before the deadline. Or you're going to regret it for sure.

4. Don't be content paying for the minimum amount due.
When your bill arrives, there's a minimum payment required. Some credit card holders make the mistake of paying for that amount alone and then use the card for their shopping sprees once again. The minimum payment covers just the interest rate. If you keep on going that way, it would take you a life time to pay off your bill - even if you don't charge anything more to it.

5. Always examine your bill.
One of the most frequent mistakes cardholders do is to just scan through their bill and then pay for the amount that they see. Always make it a point that you read every single part of the statement so that no instances of overcharging and fraudulent transactions can escape you.
Resource Box: Credit Cards Heaven™ enlightens credit card holders to keep away from Credit Card Mistakes