Don't make these credit card mistakes

Do you use your credit card responsibly? We're all tempted to overspend or rely too much on credit from time to time. But it becomes a problem when these actions turn into habits. The risks include getting yourself into serious debt and ruining your credit score.

Have a look at these common credit card mistakes. How many of them have you made?

Ignoring your balance

Do you tend to push your outstanding balance to its limit? The problem with this is that it increases your debt every month and it will ultimately take longer to pay that debt back. Worst case scenario, you could max out your credit card! This will put you in a difficult position if you need your credit card for an emergency. This is why it's a good idea to pay the whole balance each month to avoid increasing the amount you owe the following month.

Relying on your credit card

Try to avoid using your credit card to pay for every purchase. Things like coffee, lunch, and fuel can be paid for in cash, or even using your debit card. At the same time, avoid using your credit card for big expenses like your rent, for example. As a guide, only use your credit card for expenses you know you can pay off quickly.

Paying only the minimum each month

So, you pay your credit card bill on time, but you only pay the minimum you owe. This is OK as it will help keep you out of debt, but it will take longer to reduce a large balance. So, your best bet is to pay more than the minimum you owe. Of course, this might require you to review your spending habits to ensure you can cover the entire balance.

Use your credit card wisely

Building responsible credit habits takes time, but it can be done. If you're not sure where to start, follow these tips. They're great for credit card newbies and anyone who wants to make some positive changes to the way they spend money.