Skip to main content
Advertiser Disclosure
We do receive compensation from some partners whose offers appear on this page. We have not reviewed all available products or offers. Compensation may impact the order in which offers appear on page, but our editorial opinions and ratings are not influenced by compensation.

Ascent-logo

  • Credit Cards
  • Banking
  • Brokerages
  • Loans
  • Mortgages
  • Knowledge
  • Latest Picks
  • Search Icon Click here to search

Credit Cards

Top Picks
  • Best of February 2021
  • Cash Back
  • Balance Transfer
  • Travel
  • 0% APR
  • Rewards
  • Bad Credit
Knowledge
  • Beginners Guide to Credit Cards
  • How to Rebuild Your Credit
  • Maximize Your Credit Card Rewards
  • Learn More About Credit Cards
Credit Card Tools
  • Compare Cards
Looking for a new credit card?

Explore the best credit cards in every category as of February 2021.

Get started!

Banking

Top Picks
  • Best Savings Accounts
  • Best Bank Accounts
  • Best Money Market Accounts
  • Best CDs
  • Best Checking Account Bonuses
Knowledge
  • Beginners Guide to Banking
  • Everything You Need to Know About Savings
  • Money Market Accounts Made Easy
  • Learn More About Banking
Looking for a place to park your cash?

Check out our top picks of the best online savings accounts for February 2021.

Get Started!

Brokerages

Top Picks
  • Best Brokers of February 2021
  • Best Online Brokers for Beginners
  • Best Options Brokers
  • Best IRA Accounts
  • Best Roth IRA Accounts
  • Best Robo Advisors
Knowledge
  • How to Open a Brokerage Account
  • Beginner's Guide to Brokerages
  • Learn More About Brokerage
Just getting started?

Explore our picks of the best brokerage accounts for beginners for February 2021.

Get Started!

Loans

Top Picks
  • Best Loans of February 2021
  • Best Personal Loans for Bad Credit
  • Best Loans for Debt Consolidation
  • Best Low-Interest Personal Loans
  • Best Personal Loans for Good Credit
  • Best Personal Loans for Fair Credit
Knowledge
  • Personal Loans Made Easy
  • Debt Consolidation Guide
  • How to Pay Off Debt
  • Learn More About Loans
Thinking about taking out a loan?

Before you apply for a personal loan, here's what you need to know.

Get Started!

Mortgages

Top Picks
  • Best Mortgage Lenders of February 2021
  • Best Mortgage Lenders for Poor Credit
  • Best Refinance Lenders
  • Best VA Mortgage Lenders
Knowledge
  • First Time Homebuyers Guide
  • Home Loans Made Easy
  • The Complete Guide to Refinancing
  • How to Get a Mortgage with Bad Credit
  • Learn More About Mortgages
Tools & Calculators
  • Mortgage Calculator
Compare Rates
  • Today's Mortgage Rates
  • Refinance Rates
  • 15-Year Mortgage Rates
  • 20-Year Mortgage Rates
  • 30-Year Mortgage Rates
  • Jumbo Mortgage Rates
  • VA Loan Rates
  • 5/1 ARM Rates
  • 7/1 ARM Rates
  • FHA Mortgage Rates

Knowledge

Knowledge Section
  • All Articles
  • Credit Card Articles
  • Banking Articles
  • Brokerage Articles
  • Personal Loan Articles
  • Mortgage Articles
  • Personal Finance Articles
Recent Articles
  • Stimulus Check Update: Congress Moves One Step Closer to Another Round of Direct Stimulus Payments

    Personal Finance

    Stimulus Check Update: Congress Moves One Step Closer to Another Round of Direct Stimulus Payments
  • Mortgage Delinquencies Were Down in 2020's Fourth Quarter. Forbearance Could Extend That Trend

    Mortgages

    Mortgage Delinquencies Were Down in 2020's Fourth Quarter. Forbearance Could Extend That Trend
  • 22.6 Million Americans Can Cover Their Bills Through July If They Get a $1,400 Stimulus Check

    Personal Finance

    22.6 Million Americans Can Cover Their Bills Through July If They Get a $1,400 Stimulus Check
  • Current Mortgage Rates for February 24, 2021: Rates Up Again

    Mortgages

    Current Mortgage Rates for February 24, 2021: Rates Up Again
  • The Ascent
  • Knowledge
  • Credit Cards

4 Credit Card Mistakes You'll Wish You Hadn't Made

by Christy Bieber | Jan. 16, 2021

The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

A woman looks at a handful of credit cards.

Image source: Getty Images

You'll come to regret these big errors if you make them.

When you use your credit cards wisely, they can be a great financial tool. You can enjoy the rewards you'll reap from everyday spending and get to build your credit score. But if you don't make the right moves with your cards, you could end up in financial trouble that leaves you wishing you'd made different decisions.

You don't want to spend years lamenting your credit card choices, so be certain to avoid these four big mistakes you're sure to regret.

1. Getting the wrong credit card

The right credit card for you depends on your situation. If you carry a balance, the best card is one with the lowest possible interest rate. If you're trying to pay down debt, a balance transfer card with an introductory 0% promotional rate on transferred debt could be the right choice. If you pay off your card in full every month, the best card for you is the one that rewards the spending you do the most.

Unfortunately, many people don't do the research to find the card best suited to them. This could end up being a costly mistake that leads you to miss out on hundreds of dollars of rewards or pay hundreds or even thousands of dollars in extra interest.

Getting the wrong credit card is also a really easy mistake to avoid. Each year, take the time to review your credit card options, think about how you'll use your card, and assess your spending patterns. Then decide if the card you're currently carrying is the right fit or if it's time to make a change.

2. Charging more than you can afford to pay off

When you're swiping your credit card, it's easy to forget that the bill is going to come due at the end of the month. Unfortunately, this could lead to charging more than you can pay off when your statement arrives.

This is a major mistake you'll definitely wish you hadn't made. As soon as you carry a balance, you'll start to owe interest that makes your past purchases costlier. Since you'll have to devote income in the future to paying off your card, it will become harder to live within your means. And it'll be more likely you'll grow your debt balance rather than pay it down.

To avoid this situation, you should ideally live on a budget and charge only what you've determined you can afford to spend. If doing that is difficult, at least check your card balance regularly to make sure you're not spending more than you can comfortably afford to pay back.

3. Paying only the minimum

Credit card companies set minimum payments that are very low relative to the total you owe. If you pay only the minimum amount due, you're going to end up in debt for many years. And you'll likely end up paying more in interest than your purchases cost in the first place.

The best option is to pay the full balance on your credit card each month. If that's not always possible, make the largest possible monthly payment you can afford. And if you can't afford to pay more than the minimum, it's a good idea to rework your budget to free up some extra cash or look for ways to increase your income to pay down your debt faster.

4. Making the wrong person an authorized user

As a credit card holder, you're allowed to name other people as authorized users on your card. This gives them access to your credit card, and it means your card shows up on their credit history (which can help them build credit).

When you make someone an authorized user, they aren't legally responsible for the charges they make on your credit card -- you are. If they decide to run up a big bill and not pay it, you're going to be the one stuck covering the cost.

If you're tempted to name a romantic partner, friend, child, or anyone else in your life as an authorized user, make certain you're completely comfortable with their spending habits. Otherwise, this could be a decision that leaves you with major regrets.

Now that you know about these four big mistakes, you can take steps to avoid them. By researching your card options, only charging what you can afford, paying more than the minimum every month, and not giving access to your card to anyone you don't completely trust, you can set yourself up to be very happy with the benefits that come from card use. And you won't be left with regrets.

Top credit card wipes out interest until 2022

If you have credit card debt, transferring it to this top balance transfer card can allow you to pay 0% interest for a whopping 18 months! That’s one reason our experts rate this card as a top pick to help get control of your debt. It’ll allow you to pay 0% interest on both balance transfers and new purchases until 2022, and you’ll pay no annual fee. Read our full review for free and apply in just 2 minutes.

About the Author

Christy Bieber
Christy Bieber icon-button-linkedin-2x

Christy Bieber is a personal finance and legal writer with more than a decade of experience. Her work has been featured on major outlets including MSN Money, CNBC, and USA Today.

Share This Page
Facebook Icon This icon shares the page you are on via Facebook
Blue Twitter Icon Share this website with Twitter
LinkedIn Icon This image links to share the page over LinkedIn.
Email Icon Share this website with email
The Motley Fool has a Disclosure Policy. The Author and/or The Motley Fool may have an interest in companies mentioned.

The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

Related Articles

Credit cards on a desk image for Best Credit Cards for 2021

Best Credit Cards for 2021

Interest spelled out on a calculator image for Compare Credit Cards Side by Side

Compare Credit Cards Side by Side

Man holding cash image for How Do Cash Back Credit Cards Work?

How Do Cash Back Credit Cards Work?

Cyber security and computer screen image for How to Protect Yourself from Credit Card Fraud

How to Protect Yourself from Credit Card Fraud

Featured Articles

Best Credit Cards for 2021

Compare Credit Cards Side by Side

How Do Cash Back Credit Cards Work?

How to Protect Yourself from Credit Card Fraud


We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

The Ascent Logo

The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.

btn_facebook-yellow btn_twitter-yellow btn_instagram-yellow

Copyright © 2018 - 2021 The Ascent. All rights reserved.

About The Ascent
About Us Contact Us Newsroom How We Make Money Editorial Integrity Ratings Methodology
Legal
Terms of Use Privacy Policy Accessibility Policy Terms and Conditions Copyright, Trademark and Patent Information
Learn
Credit Cards Banking Brokerage Loans Recent Articles

By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.

Back to The Motley Fool