Using credit cards is an excellent way to up your credit score. But, what many do not realize is that misusing a credit card can do more harm than good. This article lists five worst and serious credit card mistakes that everyone should know about and avoid:

1. Paying your dues late
One of the biggest mistakes you can make while having a credit card is paying the dues late. Late payment can affect your credit score in the long run and make it difficult to access loans or mortgages. Not to mention, defaults in payment stay on your records for a long time. If these payments are delayed, the account can be sold off to collections. To avoid missing deadlines, set reminders or try opting for automatic payments.

2. Paying only the minimum amount due
Another common yet serious mistake that can affect your credit in the long term is paying only the minimum amount due. While this may be the way to avoid missing out on paying the amount, it is a sure-shot way to build up debt. It also means you will be paying a small sum for a long time. Some credit card companies offer interest-free cards, but most also have interest sums that are charged on the unpaid due amount. This only leads to racking up further debt.

3. Not checking the transactions
While using a credit card, it is best to check the transaction history every month. You can check this statement via online banking or even request the credit card company for a monthly billing statement delivered to your home. Checking this statement will allow you to catch any fraudulent charges immediately. It will also help you stay up-to-date with the changes in the terms and conditions of the card.

4. Picking a card that does not suit your needs
Most individuals often pick out a credit card without understanding if it suits their needs. This can backfire, as most credit cards are created to fit certain financial goals and serve different purposes. If you’re still studying and want to pick a credit card, you may want to consider picking a student credit card. If you’re a working-class individual with a stable income, you may want to consider getting cards with cash-back or rewards for purchases.

5. Having too many credit cards
Another serious mistake to make when using credit is having multiple cards. While having this is perfect for your overall credit score, defaulting on payments and overspending can often lead to more harm than good. This can only damage the overall credit score as well as the financial health of an individual. Most lenders look at having multiple credit cards as a red flag.