Credit cards can help you in case of an emergency or when you want to buy something urgently but don’t have the moolah handy. You can even build your credit with a good payment history and credit card incentives on regular purchases. However, poor credit practices can damage your credit, put you in debt, and lead to other financial issues. So, beware of these 6 bad credit card habits and avoid them.

Paying only the minimum due

It is like kicking the can down the road when you merely pay the minimum amount due on your credit card. Although you are technically making some progress, your long-term goals aren’t being met. Making minimum payments can damage your credit by increasing your credit utilization. To avoid carrying a balance, paying your account in full each month is best. By paying as much as you can each month, you will reduce the amount that will roll over to the following month and pay less interest.

Not going over your credit card statements

This is one of the most basic bad credit card habits you can have. You might find it to be tedious and time-consuming to read through each statement and evaluate it. However, one of the best ways to discover illegal charges and billing mistakes is by going through every credit card statement. To confirm your account activity, read the entire statement. To avoid being held accountable for charges you did not make, immediately notify your credit card company of any inaccuracies.

Balance transfers for avoiding payments

If you keep looking for balance transfer promotions as an excuse not to make payments, it is one of the top bad credit card habits you need to avoid. There are always costs associated with balance transfers, which will raise your overall balance if you never make payments towards the transfer. Eventually, you won’t have enough credit available to transfer the balance. This means you won’t be eligible for the promotional rate, or even worse, your application will be turned down entirely.

Obtaining cash advance loans

Although obtaining a cash advance is quick and simple, it probably isn’t worth the convenience. Cash advances frequently carry a higher interest rate than ordinary purchases from many card issuers. Additionally, unlike the grace period that issuers provide for purchases, a cash advance does not come with a grace period for repayment. Cash advance interest is instantly charged.

Not setting a budget

One of the main bad credit card habits is overspending. When your checking account balance drops to zero, a credit card doesn’t restrict you from using it or charge you any fees. So, budgeting is essential to control your spending and live within your means. Reviewing your monthly expenses will help you create a budget that accounts for your spending.

Not keeping credit cards active

In some ways, not using your credit cards at all might be just as detrimental as doing so. Many credit scoring methods ignore your credit score if your credit cards are inactive for an extended period. To keep your credit cards active, use them at least once every three to six months.

All in all, there are many benefits of using credit cards responsibly. Also, being aware of bad credit card habits, as listed above, will help you manage them properly.