Even though there are many advantages to having a credit card, without proper use this tool can cause you a lot of financial problems.
A strong credit score can help you earn lower interest rates on auto loans and mortgages so use your credit cards wisely and take advantage of the reward programs and of all the other perks.
But despite that, it’s so easy to misuse your credit cards so pay attention to the way you use this tools so you can avoid getting into debt.
Here are 7 credit card mistakes that will literally cost you:
1. LATE OR MISSED PAYMENTS
Try not to pay your credit card bill too late if you don’t want to get into debt.
Otherwise, you will be charged with a late fee and your credit card company can boost your credit card’s interest rate.
A late payment can also cause your credit score to drop since payment history accounts for 35% of your credit score.