What are five bad things you shouldn't do with a credit card?

Five Credit Card Mistakes to Avoid

Credit cards are a convenient financial tool, but they can also be a source of financial stress if not used responsibly. Here are five things you should never do with a credit card:

1. Accumulate unsustainable debt: Credit card debt can quickly spiral out of control, especially if you are only making minimum payments. Avoid carrying a balance that you cannot afford to pay off in a reasonable amount of time.

2. Miss payment deadlines: Consistently missing credit card payments will damage your credit score and result in late fees. Set up automatic payments or reminders to ensure that your payments are made on time, every time.

3. Overuse your credit limit: Maxing out your credit card can damage your credit score and make it difficult to qualify for loans in the future. Keep your credit utilization ratio below 30% to maintain a healthy credit profile.

4. Apply for too many credit cards: Applying for multiple credit cards in a short period can damage your credit score by indicating that you are desperate for credit. Only apply for new credit cards when necessary and make sure to compare interest rates and terms before making a decision.

5. Borrow excessively: Credit cards should not be used as a substitute for income. If you are relying on credit cards to cover your living expenses, it’s time to reassess your budget and find ways to reduce your spending or increase your income.

By avoiding these common mistakes, you can use credit cards as a financial tool that benefits you, rather than one that damages your credit and costs you money.