Credit cards are quite useful tools in times when you are facing a sudden cash crunch. You can use them in two ways; one is to be wise and use them smartly when you really need it, and the second is to be careless and fall into complicated hassles. However, there are far too many cases with examples of the latter.

So, let us take a look at some of the most common credit card mistakes to avoid repeating them in the future:

1. Not Making Timely Payments
Far too many are guilty of this mistake. In some cases, people just forget to make their payments, but in other instances, they are just ignorant and feel like there would be no repercussions. But this is far from the truth as there are quite serious consequences upon missing these payments. It is always bad to let your payment date exceed a delay of 30 days, as doing so could result in your credit score getting affected by 17 to 83 points. This deduction could increase even further if the delay crosses 90 days. In this scenario, the credit score could reduce by 133 points.

2. Making Multiple Credit Card Requests
You should always avoid applying for new credit cards very often. The reason for this is because every time you apply for a new one, your credit report will display a new inquiry. Multiple inquiries on your report is not a good sight at all for financial institutions. You should only apply for a credit card when you really need one, and this ideally should not be more than once in six months.

3. Not reviewing your billing statements
It is extremely important for you to check whether the transactions on your bill are properly documented. If there are any discrepancies, you can immediately report any errors. It is considered to be a good practice to review your transactions every week. If not, then at least review these transactions every month.

4. Maxing out your credit card
This is, without a doubt, the most common credit card mistake everyone makes all around the world. People keep using their credit card without keeping a track of the spending and soon max out their card. This causes your utilization rate to rise, ultimately leading affecting your credit score. If you find yourself reaching your credit card limit every month but have no problem clearing the bill, then you can always call up your credit card company and request for a credit increase.

5. Making use of your credit card for daily expenses
A credit card should only be used during times where you find yourself to be short on cash and require funds for important expenses. You should avoid using your credit card for everyday expenses.