After the last blog about the Top 5 Credit Cards for Beginners, I think it’s best to follow it up with some of the Credit Card Beginner Mistakes that you need to avoid at all cost. It’s very important for you to know these for you to maximize your credit cards full potential.

For the full-length discussion about the 5 Most Common Credit Card Beginner Mistakes and how you can avoid them, watch this video:

5 Most Common Credit Card Beginner Mistakes

1. Paying Only the Minimum Amount Due

If you want take control of your credit card, instead letting your credit card control you, you must avoid getting finance charges at all cost. Finance charges are interest applied whenever the Total Amount Due is not paid in full and on time. Paying only the minimum amount due will definitely cost you finance charges

But if you have a Citi Simplicity+ Card, where if you pay at least the minimum due on or before the due date, you can get a 10% rebate on interest charges. Not only that, you also don’t have to worry about annual fee, late payment fee, and over-limit fee, because you will not be charged for those fees with this card.

If you’re interested to apply for a Citi Simplicity+ Card, you can apply online here:

2. Not Checking Your Credit Card Statement

You’re credit card statement contains important information that can help maintain your credit card. You should always check it to make sure you will be able to pay in full on or before your due date. You can also see your available rewards points or cashback in your credit card statement.

Another benefit of checking your credit card statement regularly is making sure that there is no any suspicious transaction or hidden charges on your account. And if there is, you can easily call your bank to have it remove from your account.

3. Not Checking the Banks Promo Page Regularly

You’re already getting a huge benefit just by checking your banks promo page. You will discover that credit cards can really provide you goodies. Free stuff, free food, free travel, discount and vouchers, and a lot more. If you’re planning to purchase something with your credit card, it’s definitely not a bad idea to check the promo page first. Who knows what you can get for FREE just by doing that.

One of the best banks when it comes to giving out promos is Security Bank. They always offer a wide range of promos from travel, shopping, entertainment, and a lot more. But my personal favorite is their dining deals. I highly recommend checking it if you have a Security Bank credit card. But if you don’t have one yet, you can APPLY online here.

4. Allowing Others to Use your Credit Card

Allowing your relatives and your friends to use your credit card is one of the surefire way to get in trouble. We know how are culture works when it comes to credit. When a friend or a relative you haven’t seen for 5 years suddenly message you on Facebook and ask if they can borrow money. I’m not saying that we need to be greedy and selfish but we must protect ourselves as well. Same goes with credit cards.

Earning money is not easy that’s why I am encouraging you to invest. But it doesn’t matter how much we invest and save if a big chunk of our money is going into bad debts. If we are very careful handling our credit card, then we should be more careful lending it to someone.

5. Treating your Credit Card as Cash

Treating your credit cards as cash is a surefire way to ruin your credit worthiness. You can avoid this by constantly asking yourself these 3 questions before swiping your credit card

  1. Do i really need this?
  2. Do i really need to buy this now?
  3. Do i actually have the actual money to pay for this?

By asking yourself these questions, you will have a better understanding of your spending behavior. The key to healthy personal finance is to avoid impulsive buying as much as possible.

Always remember that most people are getting into uncontrolled credit card debt because of unhealthy purchases. Credit cards can really be a great tool for you but it can be your worst nightmare as well. Bottom line is, you have to be a responsible credit card holder if you want to have one.