Credit cards have become a common financial tool today, and for good reason. They make purchasing easy and convenient, but you should also use them wisely to enjoy these benefits. Improper or impulsive usage of credit cards can cost you greatly, dragging down your financial health. To help you, here’s a list of the most serious yet common credit card mistakes to avoid.

1. Making late payments or avoiding them
Missing a payment or paying late can certainly affect your credit score. Making your payment less than 30 days late won’t affect your credit score, but any payments made after the 30-day mark will lower your credit score by a certain number of points. Plus, late payments attract charges, increasing your debt further.

2. Avoiding the details in your bills
It may seem like a tedious task, but you must track your purchases and cross-verify them against the billing statement you receive. This can help you take prompt steps against any fraudulent actions or errors that may occur in billing.

3. Not understanding APR or interest rates
The terminology used by credit card companies may seem complicated, but you must make efforts to understand it. All that’s required is a little patience and time to understand what you are being charged for and how much. You will be provided with an agreement with all the important information when you apply for a credit card; make sure you go through it and understand the terms before signing on the dotted line.

4. Taking cash advances
This is one of the most common yet serious credit card mistakes, and it is also a risky move. Cash advances on credit cards are unlike other purchases that have a grace period for interest charges. The interest on cash advances starts accruing the minute you take the advance.

5. Not understanding the introductory offers
You must pay close attention to introductory credit card offers. Most cards come with introductory offers that assure a 0% APR, which means you’re not charged interest on any new purchases or balance transfers. While the details may vary slightly, these offers have an expiration date. Not understanding these terms means assuming that you don’t pay interest when you may actually be incurring it.

6. Maxing out your credit card
This is one of the most serious credit card mistakes. Maxing your credit limit means using the entire available limit on your credit card. This can translate to a high utilization rate, which lowers your credit score. Always remember that your credit score remains high when your utilization rate is low, so avoid impulsive buying.

Avoiding these common yet serious credit card mistakes is a great way to ensure that you use your credit card wisely and build your financial health while at it.