Credit cards are seen as convenience for financial transactions. Instead of bringing hefty cash to proceed with the financial transaction, users can simply present their credit cards. This provides an advantage to consumers since they will be able to carefully monitor their spending. Businesses, on the other hand will be able to ensure the identity of their buyers so that they can allow them to purchase products on credit.

But unfortunately, there are consumers who end up abusing the advantages of their credit cards. This financial mishap has caused them dire financial trouble and should never be emulated.

The following are the mistakes that you should avoid when using your credit card.

1. Using your credit card for cash advance - cash advance for credit cards is recommended only for emergency situations. They should never be used simply because you want to purchase something not available for credit card holders. The interest rate of cash advance is very high which means payment is a little bit harder.

2. Too many credit cards - getting approved for a credit card is very easy. But don’t take advantage of this ability as this can lead you to financial trouble. Every credit card comes with fees even though you don’t use them.

3. Missing the payment for only one or two days - credit card companies are not joking or lenient about their deadline. If you miss your payment for a day or two, you will still be charged for the full late payment fine.

4. Purchasing too many small products - there are those that opted to use their credit cards in many products even for very small items. Their additional interest could be small but can steadily increase if you consistently use your credit card for small items.

5. Credit card as your only payment option - relying solely on your credit card can start a very dangerous debt cycle. If you’re stuck with the credit card, you’ll never be able to purchase things you want as your income will only be used for paying for your credit card debt.

6. Opting for store credit cards - store credit cards may give you discount on your purchases. But that’s their only advantage as this type of credit card often has a high interest rate and hidden fees. The disadvantages easily outweigh the small advantage of the store credit cards.

7. Missing one month of payment - it doesn’t matter if you have been faithful in your payment for yeas. One missed payment could exponentially increase your debt next month. It’s a very troubling fact but a debt has to be paid on time or else serious consequences will be experienced.

8. Not reading the terms and conditions - the number one mistake a consumer would have before agreeing to use a credit card is avoiding the terms and conditions. There are too many hidden fees and fines included in the terms and conditions and ignoring them could mean additional spending.

9. No budget on credit card purchases - the use of credit card should always be limited to ensure a budgeting spending. A limit should be in place in order to avoid overspending which can cause immediate financial trouble.

10. Getting the "low interest" offer - there are consumers who take advantage of the "low interest" offer by many credit card companies. But these are often are just "trick" advertising as these are only available for consumers who have great credit. They will still provide you with the credit card but your interest rate is not the same especially if you do not have a good credit rating.