Owning a credit card has its perks. It also comes with certain responsibilities. There are ways to make the most of your credit card as well as to avoid unnecessary charges.

Here are credit card mistakes to avoid:

Making minimum only payments

If you only pay the minimum of your credit card balance, it increases the amount of time it takes to pay off your credit card balance as well as the amount of interest you pay. By paying only the minimum, you stay in debt for longer, meaning that you pay more in the long run.

Maxing out your credit card

Credit card limits are the maximum amounts you can charge on your card without facing any penalties. If you max out your credit card, your credit score will drop. If your credit card balances are too high, banks will consider you as having more debt than you can handle. Aim to spend lower than your credit limit.

Applying for too many credit cards at the same time

It’s better to apply for new credit cards one at a time on an as-needed basis. Each application has the potential to knock points off your credit score. So every time you apply for a credit card, it raises red flags on your credit profile.

Not being familiar with your credit card terms

Knowing your credit card terms give you more control over your credit card costs. You know exactly how much you are liable for and what your interest charges are.

Ignoring your billing statement

You may miss out on important communication from your credit card issuer.

Your utilization is too high

A high utilization ration can have a negative impact on your credit score.  It also means that you have less credit available for emergencies.

Taking cash advances

Most banks begin applying interest the moment the advance is taken, so this may be one of the most important credit card mistakes to avoid. Ideally, you should use your credit card for emergencies.