If you also use a credit card, then you should avoid such 5 mistakes, which can prove costly for you, can spoil your credit score. Know which mistakes should be avoided by credit card users.

In today's time, the use of credit card has become common. Many people also have more than one credit card. These cards provide many facilities to the user, but some mistakes made by them cause them financial loss. Even today, there are many credit card users who make some such mistakes, which have a huge impact on their pocket. Today we will tell you about 5 such costly mistakes and tips to avoid them.

Credit card users make these 5 mistakes

1. Paying only the minimum amount

Many users pay only the minimum amount of the credit card bill. But this mistake can cost them heavily. Because paying only the minimum amount can lead to paying 2.5-3.5% monthly interest on the outstanding amount. Which can be up to 30-40% annually. To avoid this situation, always pay the total outstanding amount on time.

2. Withdrawing cash from credit card

Many credit card users are not aware that they have to pay a fee for withdrawing cash from ATM. Withdrawing money from ATM charges 2.5-3% fee and interest from the first day of withdrawal. There is no interest-free period. To avoid such a situation, use debit card or personal loan for cash.

3. Making maximum use of credit limit

If you also use your credit limit completely, then it can spoil your credit score. This shows a high credit utilization ratio. Try to use at least 30% of your credit limit. For this you can track your expenses.

4. Making unnecessary purchases

Many people start making unnecessary purchases through credit card. Due to which their bill and financial burden increases. To avoid such a situation, make a budget and buy only necessary things from credit card.

5. Delay in paying bills

If you also have a habit of paying bills late, then it leads to late fees, high interest and negative impact on credit score. In such a situation, set auto-payment or set a reminder so that the bill is paid on time.

Keep these things in mind

Always use credit card carefully. If you are not using the credit card, then close it, because charges can be levied even on inactive cards.

Always check your credit score. Understand the terms and conditions of the card issuing company.