Credit cards are a great way to build your credit score, but if you’re not careful they can quickly become a burden. A study by the Consumer Financial Protection Bureau found that about half of Americans have at least one credit card and that adults carry an average of 3.1 cards apiece. If you’re carrying more than 2 or 3 cards then it’s time to take stock of your situation and avoid these 5 common pitfalls:

1. Maxing out your credit limit


Maxing out your credit limit is the most common mistake that people make with their credit cards. While maxing out your card can get you rewards points, it also increases how much money you are borrowing from the bank and will hurt both your score and wallet in the long run. Always pay off your balance in full each month, even if this means spending less on other things for a while.

2. Making late payments


Another mistake that people often make is making their credit card payment late. While the interest rates on these cards are typically very high, it can be even worse if you miss a payment or two due to carelessness or unforeseen circumstances like meeting with an accident and being unable to work for multiple weeks which would lead to missed bills along with many other consequences as well.

This makes paying your bill on time so important so you don’t get into any serious financial problems by racking up more charges than necessary. Late payments will show up on your report for 7 years; make sure you never miss any due dates (or be prepared to pay fees).

There is a great credit card for people who like to shop online and offline at a local stores in order to get the most savings possible. Furthermore, this type of financial instrument has zero late payment fees so you won’t have to worry about any additional hoops that’ll need jumping through just because something came up with your family overnight which made it difficult or impossible to make payments on time.

In addition, there are no annual membership fees associated with having card either so these sorts of expenses can be avoided all together without worrying about getting charged extra each month if not careful when making purchases throughout the day since they might add up quickly before realizing what’s going on overall!

3. Paying only minimum amounts each month (if anything)


If you’re someone who has trouble keeping track of all of the different things going on in your life then this might not come as too much of a surprise to you. However, by paying only the minimum amount due each month it is going to take years before you’re able to pay off your debt and this can lead to very bad problems down the line if not careful enough about how much money they owe at any given time.

If someone doesn’t have a lot of extra money saved up or don’t really know what would happen in a worst-case scenario then sometimes it might be best just sticking with their budget so they aren’t putting themselves even more behind on added interest charges that will come along later when least expecting them.

4. Ignoring your billing statement


Another common mistake that people make which could end up costing them everything is not checking their billing statement when they get it. By simply ignoring your payment due date, you could end up racking up more bills than necessary which would only make the problem worse in the long run if not caught by themselves or having someone else helping to keep track of these sorts of things so that they don’t fall behind on making payments later down the line.

5. Having too many credit cards


Having too many credit cards is another big mistake that people often make with their finances and can cost them a lot of money over time as well. For example, one might have four different credit cards for emergencies but are using each card every month without really thinking about how much debt they are getting into at this point since payday is still weeks away from even being able to start paying off their expenses.

Therefore, it is best to just have one or two cards that are only used for emergencies at this point since having too many credit cards can be a very bad thing if not careful about how much money they owe overall. Business credit cards are a great way for small businesses to have easy access to getting the capital they need without having to worry about waiting weeks or even months before being able to cash checks or pay their bills.

However, it is important that these companies make sure that they aren’t going overboard with spending and can afford everything coming in each month so there isn’t any problems later on when something unexpected happens like an accident at work which could keep you from making payments as scheduled then all of your business’s money would be completely gone since no one else is helping out with anything throughout the day.

Furthermore, most small business owners should definitely try applying for a business card but will probably want to start off slow by only using this type of financial instrument once every couple of months and work their way up to using it more often when they’ve had a chance to save up enough money in order to pay off whatever expenses come in each month so there aren’t any problems later on.


These are all common mistakes that people make with their credit cards which could lead to serious problems down the line so try your best to avoid these things as much as possible in order to save yourself from an even bigger headache later on. You can use the information provided at to avoid these mistakes.

If you follow the above five simple steps then you will definitely be able to get rid of any debts and start saving up more money before making purchases online or offline without worrying about spending too much than necessary each month!