Home Business Top 6 Common Credit Card Mistakes to Avoid

Top 6 Common Credit Card Mistakes to Avoid


Credit cards can be a great way for you to make purchases, get rewards, and build credit. However, you must use your credit card responsibly. You could face penalties or fees if you don’t. 

Credit Cards when used irresponsibly can also damage your credit score and cause you to pay more money. Credit cards work according to the principle of “buy now, pay later”. 

The cards offer instant credit access and a variety of privileges such as cashback, reward points, discounts, and many more. 

Credit cards can be an excellent financial asset if used properly. These cards can increase your credit score, and you can also enjoy a variety of other benefits.

Here are the top 6 credit card mistakes that you should avoid:

Late Payments

According to the Consumer Financial Protection Bureau (CFPB), credit card payments will not be considered late if they are received before 5 p.m. on their due date. 

There are many consequences to missing your payment deadline. Issuers may charge fees if your credit card payment is late for the first time. Issuers may charge a higher late fee if your credit card payment is late in the following six billing cycles. According to the CFPB, credit scoring also depends on payment history. 

If a payment is more than 30 days late, your credit score could be affected. Negative credit information can remain on your credit report for at least seven years. To help you remember, set up automatic payments or a reminder a few weeks before the payment is due.

Not Reviewing the Bill Statement

You should verify that all transactions on your bill are correct to prevent fraudsters from stealing your money or reporting errors. You should at the very minimum, review your monthly statement to look for errors. It’s important to review your monthly statement for errors at the very least. 

Almost every credit card service offers you a billing statement for review. The Destiny Mastercard works the same way. You can do the Destiny credit card login to get your billing statement and review it 


Because the money isn’t taken out of your pocket when you purchase with a credit card, you are more likely to spend than your budget. Online shopping has made it easier and more convenient to use a credit card. 

Online shopping allows people to shop from their homes and use their credit cards without having to leave their wallets. They forget all about the debt and are tempted to shop even more. This cycle continues and people continue to accumulate debt that is difficult to repay.

Not Understanding Interest Rates

Credit card interest refers to the cost of borrowing money. You can avoid interest charges for new purchases by paying your balance in full each month. Remember those minimum payments that are due? 

You will likely be charged interest if you carry over any portion of your balance into the next month. Different types of transactions might have different interest rates. 

Cash advances and balance transfers can have higher interest rates or additional fees. These transactions may not be eligible for a grace time. If you have any questions regarding the card, you can contact your card provider company to resolve the problem. 

Reaching The Credit Limit

The issuer will give you a credit limit if you are approved for a card. This limit is the maximum amount that you can charge to your credit card. You can only use your entire credit limit. Most card providers offer an online portal where you can check the credit limit. For example, the Destiny Mastercard offers the Destiny Mastercard login that you can use to keep track of the credit limit. 

However, this could affect your credit scores. This is because a percentage of your credit score is affected by how much credit you use compared to what you have. This is called your credit utilization ratio. The CFPB states that exceeding your credit limit can lead to credit score declines. Experts advise against exceeding 30% of your credit limit across all accounts.

Cash Advances

Many credit cards offer two interest rates and credit limits. One for purchases, one for cash advances at ATMs or through a bank teller. 

The latter service will almost always have a lower credit limit and a higher interest rate. There may also be additional fees.


Credit cards are more than just convenient. Credit cards are not only convenient, but they’re an essential part of building a healthy financial profile. Credit cards can be a key component in building credit. 

It is important to use them responsibly, carefully, and selectively. This will allow you to purchase larger items such as a house or an automobile with relative ease. Avoid these mistakes if you want to make the most of your credit cards.

Exit mobile version