Stay Away From These Pitfalls To Make The Most Of Your Credit Card

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Written By Charlotte Miller


A credit card has become an integral part of our lives, especially in this digital era. 

The credit card market is huge and continues to grow rapidly as more and more industries adopt them.

Many benefits come with taking credit card payments, such as getting an instant credit card, cashback, discounts, and rewards. 

It is also essential to remember that any purchase you make while using your credit card will go on your credit report. 

So, be careful not to make any errors or do anything that could harm your credit score!

Credit cards are a great way for consumers to spend more money and earn more rewards, but certain pitfalls can make your credit card experience less than stellar. 

If you want to get the most out of your credit card, avoid the following ten mistakes.

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What pitfalls should one avoid in making the most of their credit card?

To make the most of your instant credit card, one needs to avoid the following pitfall:

1. Making late payments

Late payments are one of the most typical credit card blunders.

This is because they do not realise how much interest they will have to pay if they do not pay off the balance in full each month. 

They also fail to consider the fees associated with late payments, which can add up over time.

Further, late payments on credit cards can have a significant impact on the overall score of your credit report.

You are required to pay off your entire balance by the due date each month, and if you do not, it may affect your credit score.

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2. Misconception of the minimum payment

Many people think that paying a certain amount on their monthly credit card is enough to keep it in good shape. 

However, this is not always true; paying the minimum amount can lead you into a debt trap, and interest charges could also add up. 

If you make only one small monthly payment, your credit score will suffer.

3. Do not run for rewards

Credit cards offer rewards as an enticement to use the card. 

Rewards, on the other hand, must not be the primary motivation for using a credit card. 

You need to avoid just focusing on such benefits and use the credit card wisely.

4. Neglecting the monthly statement

This is one of the biggest mistakes that most people make. They usually neglect the monthly statement. 

It is essential to read your monthly credit card statements at least every month, pay off any expenses, and identify any fraudulent activity or reporting errors.

This will help you ensure you are paying the correct amount and that you do not go over your credit limit.

5. Why read the terms and conditions?

Many rules and regulations govern your use of a credit card, so reading them carefully is important if you want to avoid any misunderstandings or problems down the line.

6. Hitting the credit limit

A credit limit is a genuine limit representing the utmost amount a credit card user can obtain. 

It is determined following a thorough examination of the user’s financial history. 

It accurately indicates your financial capability and the amount of debt you can take on.

Using more than the credit limit is another common mistake people make when using their credit cards. 

They tend to go over the credit limit too quickly and pay interest on top of it all, which can be expensive!

7. Applying for too many cards

Too many credit cards can cause problems with your finances, as they may make it hard to pay off the balance in full each month. 

If you have a lot of credit card debt, consider consolidating existing balances into one low-interest loan to pay it off more quickly.

8. Compare lenders

Different banks offer different rewards and perks, so before applying for a new card, compare the offers from each bank to find the one that is right for you.

9. Sharing sensitive information

When applying for a new credit card account, ensure that no one else has access to your details – such as name, address, phone number, or card details.

If someone stole your identity or details, this could put your identity at risk.

10. Cancelling the credit card 

One component determining your credit score is the average length of time you have had credit. 

The average duration of your credit history is changed when you close a credit card. 

It is not a smart idea to close a credit card, especially your oldest one.


A credit card is something that many of us can utilise to manage our finances and make it easy to access money when we need it. 

Not only that, there are plenty of perks and benefits to a credit card.

Taking a responsible approach to credit can help one build their credit history and get their first loan later in life. 

One needs to pay for only what they can afford and pay off the card balance each month or sooner. 

Ultimately, the best free credit card in India needs to be considered just another financial tool. 

With that said, you must always make sure to avoid these pitfalls to make the most of your credit card.