Making mistakes with a credit card is much more common than you would think.  Simple mistakes that you think would not cause a great deal of trouble can prove to be the most devastating actions of all in the long run.  Knowing the most common mistakes made with credit cards and knowing how to avoid them will help you create a more secure financial future for yourself and your family.

Missing A Payment

One of the most common mistakes associated with using a credit card is missing a scheduled payment for that credit card.  Not only will the missed payment result in penalty fees charged to the account, but may also be responsible for causing the credit card account to go over the limit triggering over the limit fees and may be responsible for a dramatic increase in the interest rate for the credit card.  The fact that a payment was missed on the credit card account will also be reflected in your credit report and will be responsible for a modest drop in your credit score.

Using All Of Your Available Credit

Another mistake that many people make with their credit cards is using all of the available credit on the credit card until the card is maxed out.  The percentage of your available credit that is being used is part of the calculation of your credit score and if you are using a high percentage of your available credit, your credit score will drop by a significant amount.  This can result in not having enough credit available to handle an emergency situation or being denied additional credit in the future.

Leaving Personal Information Vulnerable

One of the biggest mistakes that you can make with your credit card is not keeping your personal or credit card information secure enough that it cannot be stolen by thieves.  Theft by credit card is becoming more common every day, with billions of dollars stolen annually by thieves that have obtained an individual’s credit card number and uses it for their own personal gain, often sticking the victim with a bill worth thousands of dollars.  It is important to keep the information about your credit cards secure at all times and be wary of the websites that you enter your credit card information on.  Mining for credit card numbers through unsecured websites is one of the easiest ways for a thief to obtain your credit card number.


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