A credit card comes in very handy if you are short on cash at the moment. These financial instruments enable easy cashless transactions, but avoiding certain common credit card mistakes can save you from accumulating a huge debt or ending up with a poor credit score. You can get started by paying off your bills on time and spending judiciously. To know about more mistakes, read on.

• Using a credit card for perishables : Using your credit card to spend on perishables is a strict no-no, so don’t buy groceries or pay electricity bills with your credit card. You should use the card to spend on things you will still have with you when paying the bill at the end of the month. Taking a card to enjoy rewards or rebates is also not smart, as they might simply boost your spending habits. You may even end up paying for a rewards card that you do not use often.
• Keeping multiple cards : This is one of the biggest and most common credit card mistakes you can make. Remember that more cards imply more debt as credit cards will never supplement your original income, and tracking the bills can be a hassle, making you miss out on a payment. If you are trying to get a loan, having too many credit cards can also reflect poorly on your repayment ability.
• Late payments and maxing out:  Delaying a monthly bill can affect your credit score adversely and make you incur late fees, so keep reminders on a calendar or your phone and clear off the dues on time. Also, people tend to max out their cards when they can’t pay off the existing debt, but over-limit fees are charged in this case. So, spending on impulse and maxing out your credit card are among the most  common credit card mistakes to avoid.
• Paying only the minimum amount : Although paying off the minimum amount can help you steer clear of fines, you should try to pay the maximum amount you can afford so that the debt can be cleared at the earliest. Paying only the minimum amount every month, in the long run, is one of the common credit card mistakes as you might end up paying high interest on the amount you borrowed.
• Not comparing or reading the fine print:  Before taking a credit card, ensure that you research well and compare the rates offered by multiple financial institutions. Choosing a high-rate card will burden you with excess debt, and reading the fine print is essential to avoid this. You must know when the introductory rates end so that you don’t rake up unnecessary bills. And finding out about the balance transfer fees is also wise before you apply for a credit card.

To ensure your financial wellbeing and peace of mind, avoid making these common credit card mistakes.