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6 Credit Card Mistakes to Avoid

3 MinsJan 18, 2023

Owning a credit card is a great opportunity for consumers. One of the biggest benefits of having a credit card is that you can build your credit score. The credit score ranges between 300 and 900, which rates your creditworthiness. A higher credit score works in your favour, especially when you are looking to take a loan and access other financial products.

6 Mistakes To Avoid When Using Credit Cards


You can also avail of several additional benefits. For instance, you can earn travel miles, fuel surcharge waivers and shopping discounts. This is like free money in your pocket. You may have access to exclusive offers. A credit card also enables you to make bigger purchases and reap the benefits by increasing the rewards earned.

To leverage the best benefits of credit cards and build a higher credit score, make sure to build positive consumer habits. Once you start using your credit card, be sure to avoid these common credit card mistakes.

1. Forgetting to pay your bill on time

Not paying your credit card bill on time comes with several consequences. You will be charged late fees and interest on your billing amount. Forgetting to pay your bill over and over again can considerably increase your costs and result in a lowered credit score. The best option is to put reminders in your calendar or a smartphone app. You can even automate your credit card payment every month. Just ensure that your savings account has enough funds.

2. Not choosing the right card

There are a large variety of credit cards available today. Their benefits vary from collecting travel miles and reward points to offering exclusive deals on shopping and dining out. Make sure to choose a card that fits your lifestyle. For instance, if you love travelling by air often, it is a good idea to go for a card that promises travel miles as it can significantly bring down your travel cost. On the other hand, if you are a foodie and love eating out, you can go for a card with dining-out benefits.

3. Not understanding fees and charges

Your card may come with an annual fee. Be sure to understand the exact amount so you can budget for it every year. Weigh the pros of paying these fees against the benefits offered by the card. Also make sure you understand exactly how much interest is charged on late payments, as well as the value of late fees. Make a note of these figures and compare the details on each card, so you can make an informed decision.

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[Also Read: Importance of choosing a credit card that suits your needs]

4. Paying only the minimum amount

Some credit card holders may be living beyond their means. Hence, they only end up paying the minimum amount due. This is one of the most common credit card mistakes that lead consumers into debt and a reduced credit score. It is advisable to live within your means and always pay the full amount due.

5. Leaving your card unattended

Ensure that your credit card is always in your possession. For instance, do not leave it unattended in a restaurant or hand it over to the staff before swiping. When making an online credit card payment, ensure that you do not leave your credit card details on the screen. Someone who uses your laptop or takes a peek at it can get access to the details. Carelessness can lead to credit card fraud.

6. Taking cash advances without planning

Some credit cards allow you to take cash advances. However, the interest is typically high. Hence, you must avail of this option only when there is absolutely no other choice during an emergency. Make sure you are aware of the interest being charged, as well as any other hidden charges.

Axis Bank customers can avail of a variety of credit cards based on their needs and lifestyle habits. Choose from cards that offer travel benefits, dining out perks, movie deals, shopping discounts and fuel perks. You can also build your credit score and access credit options in the future. For a hassle-free and rewarding credit card experience, practice positive credit card consumer habits and keep enhancing your credit card score.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.