12+ Common Credit Card Mistakes You Should Avoid In 2021

Credit cards have been a boon to humans.

Whether it be buying something online or paying for things when you have a shortage of cash.

Credit cards could be of great use to the consumer.

You could buy anything anytime with a single swipe. Some of the cards also offer rewards and cash backs while others provide extra protection to your purchases.

But as we know with great power comes great responsibility. Credit cards, if not used properly could be harmful to your financial health and also can affect your card score.

So how to deal with that?

Here are 12 credit card mistakes you should avoid in order to save yourself from unnecessary hassle.

Also you can deal with this by generating Virtual Credit Cards from Namso . You can use the generated cards in trial sections which will avoid unnecessary card exposure.

credit card mistakes

Monthly bills

One of the biggest mistakes that a consumer makes is not paying their bills on time. Most people delay their bill payment thinking that they would pay it later. But they are unaware of the fact that if their dues increase for more than 2 months, the credit card issuer could increase the interest pay rate by 29% along with the late fee fine.

This would also have a bad impact on their credit score. When the card issuer submits your credit report to the bureaus, they can destroy your whole credit report within seconds if they see you are not up to date with your bills.

Also Read:- All You Need To Know About Secured Credit Cards And Their Benefits.


If you have a credit card then well and good but if you are going to have your first-ever credit card then this is the most common mistake that a consumer makes.

Generally, in order to get the credit card fast, consumers submit the application multiple times. This could have a bad impact on the credit card issuer.

When an issuer issues a credit card to someone, they have a brief look at their past credit history and if they find multiple queries on a single report it is a high chance that the request of issuing the card would get denied.

Also Read:- 15+ ways to avoid credit card skimmers in 2021

Daily purchases

This is also one of the most common mistakes people make with credit cards. They use credit cards for their daily purchases such as groceries and utilities. Imagine you buying a trifle thing from a credit card for some dollars and then eventually it doubles or triples up just because you were not able to pay your bills at the end of the month.

Doesn’t make sense right?

Loaning your card

Some people loan their credit cards in order to earn some money by increasing the rate from the actual rate. This is the most stupid thing that a person could do.

Loaning your credit card means you are giving access to somebody else to buy anything that they want in your name and if they are unable to pay the debt you would be held responsible and not them. The bank would approach you for their purchases and then for some dollars you could be in very big trouble.

So never loan your credit card to anyone no matter how much close that person is to you.

Medical bills

Paying your medical bills especially if you are uninsured could turn out to be a mistake for you. As medical bills are overly expensive and could result in double the actual bill if you are unable to pay your debts at the end of the month which could lead you to big trouble.

Instead of paying your medical bills from a credit card, you could sign a bond with the hospital to pay their bill in installments later on.

Overusing your card

If you have a card for your utility, that doesn’t mean that you could overuse it. Not setting a budget could be harmful to your financial health as well as your credit score.

Purchasing things over your card limit is a very bad choice to make because that would charge you a lot of interest rate and at last, things that you bought would become double of their actual rates and would not be worth it at all.

So it’s advised to use your card in a limit rather than overusing it.

More than one credit card

Having a lot of credit cards with you could lead to that many problems for yourself. Every time when you apply for a credit card, it affects your credit scores especially if you apply for it during a short duration of time.

Before applying for another credit card just ask yourself, do you really need that card, and even if you do apply for another card after six months of issuing your first card. Gathering too many cards would also sum up your bills at the end of the month. Keep that thing in mind.

Minimum balance

People who lack funds prefer paying the minimum balance that the issuer asks them to do. Paying minimum balance means paying the minimum amount at the end of the month for maintaining the card score. However if you pay a little more than your minimum balance it would help you to maintain your rates but if you only pay a minimum balance after a certain span of time the rates would increase and you would end up paying your bills with high rates of interest.

Terms and conditions

Reading the terms and conditions before issuing the credit card should be considered as the topmost priority. Some people think that it is not that important but they are highly mistaken.

Knowing things like how the company handles the late payments, restrictions while using the card, t&c of rewards and offers, etc. Would help you to manage your card well and maintain a good credit score.

Old credit cards

People often tend to close their older credit cards after getting issued a newer one. But it is highly advised not to do the same. That old credit card could help you to improve your credit scores so it is better to leave the credit card as it is instead of closing the card.

Billing statement

Never ignore your billing statement no matter how busy you are.

Billing statements give you an insight into your bills, interest rates, and other important information.

It helps you to keep a check on your monthly expenses and hence also helps you to keep an eye on any fraudulence going on from your card.

It also provides regular updates on your interest rates etc. So checking bill statements should be considered as the utmost priority.

Stolen card

If your card gets stolen by any means, your first priority should be to report it to the card issuer as soon as possible. If you do so the bank then will be responsible for the card but if you don’t then you will have to pay for every transaction that will be happening from your card. So it’s better to stay in touch with the issuer of the card as well as the bank and inform them as soon as any mishappening takes place

So these are some of the ways you can take good care of your card as well as your financial health and use your card responsibly and in your favour.

Happy reading!

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