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5 Common Credit Card Mistakes to Avoid
Use credit to elevate, not deflate
I see a credit card as a tool meant to elevate you. A tool that will put you in a position to qualify for any loan product you may want in the future. A credit card is a great tool when used correctly, but when it is used incorrectly, it can deflate you and put you in a financial position that can be difficult to get out of. When it comes to the five common credit card mistakes to avoid, they are as followed:
1. Only Making Minimum Payments
2. Missing a Payment
3. Not Reviewing Your Billing Statement
4. Not Knowing the Terms and Conditions of Your Credit Card
5. Applying for Too Many Credit Cards at Once
1. Only Making Minimum Payments
When you only make minimum payments on your credit card, you are putting yourself at risk of being faced with high-interest rates, such as 14.6%, which is approximately the average interest rate for credit cards. You do not want to be faced with high-interest rates, which is why it is important always to pay your full statement balance every month. Do not turn small expenses into unnecessarily large expenses.
