When you hear the phrase "credit card mistakes," you probably think of out-of-control spending. However, even people without major credit card debt often use their cards unwisely without ever realizing it. Be sure to educate yourself and avoid the following common pitfalls.
Not understanding interest charges. This is the No. 1 biggest mistake consumers can make when it comes to any type of credit. Pay close attention to interest rates when signing up for new cards and always try asking for a better interest rate. Remember that many cards will offer introductory rates that are low for the first year but then skyrocket. Also avoid being tricked by deferred interest rates; interest still begins at the day of purchase unless you pay off the full amount by the end of the deferment period. Keep in mind that cash advances, unlike normal credit card purchases, usually accrue interest even when paid in full at the end of the month.