Most of the people are attracted towards Credit cards, it seems that they are sugar coated assets that we possess. If someone thinks that the borrowed money is our property then he is making a mistake. Credit cards are designed such that it makes you spend and build debt, even the smallest amount.

So if you don’t want to loose focus and you are not willing to become addicted to credit card spending, then here I have mentioned you 5 things that you should never do with your credit cards.

1. Don’t make late payments.

You should never be late in making your payments. Because if you do so you will not only incur late fee-as high as $39 on some cards, but other than that your interest rate could also increase.

You should sign up for online banking or you may pay by phone if you don’t want to miss your payments. You possibly might have to pay a processing fee, generally about $5 but still it will  be much less than the late fee imposed by the credit card company.

2. Don’t pay the minimum amount due.

You should never pay just the minimum amount due as this stretches out your payment.  Moreover your interest rates increases your original balance significantly.

3. Don’t own too many cards.

If you are using multiple cards for your expenses then stop doing this right away. It is because using multiple cards make it easier to rack up debt because it is difficult to keep track of your spending.

If you are just having lots of cards then this isn’t necessarily bad for your credit, but if you are using all of them then this could create trouble for you. So you should limit your plastic to two national cards (NOT store cards) that you have to manage carefully.

4. Never take cash advances.

You should never apply for any cash advances as they generally come with extremely high interest rates and service fees. A good rule to live by is that you should always try that you should never pay more cash in order to borrow cash.

5. Never use your card to buy things you can’t afford.

If you are living a borrowed lifestyle then it you will take no time in getting into huge debt burden. If today you can’t afford a purchase, then there are chances that you won’t be able to afford it tomorrow, or even next month.

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