What credit card mistakes do consumers regularly make?

When it comes to managing credit cards properly, most consumers know that it's not always easy to do so. Financial emergencies can crop up all the time without the slightest notice, and that can put any cardholder on their heels as they scramble to cover added costs they could not have anticipated. However, other mistakes in dealing with such accounts are common as well, and the more consumers know about them, the better positioned they'll typically be to not suffer them.

The biggest mistake consumers can make when it comes to dealing with their accounts is simply missing a payment. While this is a common misstep to make, and many may think it's not even that big of a deal to let a deadline go past by a few days here or there, it's actually vital that this never happen. The reason for this is that, depending upon the specific lending agreement, even missing a payment date by a single day can add on penalty fees and rates, therefore increasing the amount owed on the card, in addition to potentially lowering a borrower's credit score significantly.

But many consumers typically endeavor to make all their payments on time, and instead often make a different mistake when sending it in: Only paying the minimum listed on the bill. While this will keep consumers in good standing with their lenders, it will also typically add a lot to their balances and take them much longer to pay off their debts, which further adds onto the amount they pay in interest every month. Relatively new federal laws state that any amount paid above the minimum must go toward reducing the principal, thereby slashing the accrual of future interest charges.

What else can be fixed?
Consumers should also keep in mind that they might want to more carefully examine all the documents they receive from their lenders. While many may often check their balance and make a payment quickly, before throwing out their statements or filing them away, looking over these mailings can do cardholders a world of good. Not only will it potentially help them to see how much they're spending - and on what - it could also allow them to spot charges they don't recognize, which could be the result of errors or even identity theft.

In general, the more consumers can do to get a handle on their credit cards, the better off other aspects of their finances are likely to be as well.