2. Making late payments: Your credit card issuer will not inform you about missing the payments as he can add extra fees and charges, including interest and late-payment penalties on your next bill statement. By paying late or paying minimum on your credit card not only increases the amount of time it takes to pay off your credit card balance, but also increases the amount of interest you pay on your credit card. It is advisable to check for the due date and send monthly payments on time. It is better to use Auto pay to avoid late fees. Try to make regular installments from an everyday account and also set up SMS or email reminders five days before your payment is due to make sure you never forget.

3. Applying for more credit cards: Applying for too many cards is like inviting more trouble. This can be one reason for your financial disaster. There are people who argue that one card is more than you need, and there are other financial experts who suggest that having one or two can be useful when it comes to building a good credit score. Credit cards are useful in emergencies when you don’t have cash in hand. Furthermore applying for many cards can be a red flag and damage your credit score and it can also limit your ability to get good rates on home and auto loans in future. Thus instead of applying for every card you see, compare and choose a card that is likely to suit your needs.

Read More:

HCL To Run Norwegian Bank's IT Operations

Sensex Down 22 Points In Early Trade On Profit Booking