By avoiding a few things as far as credit cards are concerned, you stand to benefit a lot in the long term. A lot of people are not serious about credit card debt and find soon enough that they have an outstanding balance which cannot be paid easily. This leads to higher interests, adding to the outstanding balance. Not only are you paying more money to the credit card company instead of saving them for yourself, you are also not getting the returns which you should have earned with the interests you pay. The first thing to avoid is a high credit card debt.
If your credit card debt is hefty, stop using it for purchases, till you bring it back to a manageable level. This is because when you purchase with a credit card and don’t repay the money, you are indirectly paying a greater price on the item that you bought in the form of interest on your credit card debt. So, purchase with cash if you have to, while you repay all your credit card debt. You should avoid using multiple credit cards, as it is a common habit to spend a lot on all the cards and max them out in no time. It is a good idea to stick to 1 or at the most, 2 credit cards.
A common mistake that people do is to transfer their balance from one credit card to another frequently. It is a good idea to transfer your outstanding balance to another card, when you are getting some good offers, like a 0% interest on your transferred balance for more than a year, bonus points and cash back rewards. However, if you just transfer your balance from one card to another to avoid paying your debt, your credit score will go down while you too will end up losing a lot of money.
It is important to track the last payment dates and the minimum payment amounts and get over with them. It is a bad idea to ever miss a payment deadline as that could affect your credit score. It is also a bad idea to cross your credit limit. Lastly, it is important not to close your credit cards, as you will lose significant credit history that could actually help your credit score. Earning discounts while purchasing with credit cards saves you money, but you should avoid purchasing just to earn discounts.