Credit Cards

3 Credit Card Mistakes to Avoid

EPF Last Update: May 22, 2020

With American credit card debt continuing to rise – surpassing the highs we saw during the 2008 financial crisis – more citizens are relying on debt to finance their lifestyle. Moreover, data from the Consumer Financial Protection Bureau (CFPB) implies that 71% of credit card accounts rollover each month and incur interest charges.

And as the cycle continues, your finances become worse-off.

So, before you use your credit card to make your next purchase, consider whether you’re making one of these 3 mistakes.

Not Tracking Your Spending

Regardless of income, everyone needs to spend within their means. But, if you don’t track your credit card spending, how will you know whether or not you’re staying within your budget? When you don’t pay attention to where your money is going, you’re more likely to rack-up a balance that you can’t pay off when the bill comes due.

Think of yourself as a business.

Your revenue should always outpace your expenses. If you’re spending beyond your after-tax income, how long can you keep that up? Carrying a positive credit card balance every month will have a devastating effect on your financial health. Remember, the average credit card interest rate for accounts assessed interest is 17.14%. And many credit cards have APRs of 28% or more. The longer you carry a positive balance, the more these charges add-up.

Making Impulse Purchases

Maybe it’s a new pair of shoes. Or maybe it’s the latest smartphone. Whatever the temptation, credit cards are an easy way to finance items you really can’t afford. So before pulling the trigger, implement a 1-Day Rule: The next time you come across an item you really want, let it go and move on with your day. When you wake up the next morning, ask yourself if you still want the item. You’ll likely realize that it’s not that important to you and you actually don’t need it.

Remember, best practice is to use your credit card balance for items you truly need.


Often times, people use shopping as a way to pass the time. Going to the mall can provide something to do on a Saturday afternoon and browsing online can kill a few hours when you’re stuck in the house. Problem is, using shopping as a cure for boredom is an expensive remedy.

To curb the problem, set aside a certain amount each month for frivolous spending. Better yet, consider hobbies that are less costly. Try going for a bike ride or taking a walk with friends. Take up gardening or learn to play tennis. In the winter, you can try learning a new language or how to play an instrument. Or what about taking an educational course online to increase your attractiveness in the job market? At Udemy, there are thousands of affordable courses, each offering lifetime access. And not only will they keep your mind occupied and help you save more money, but the skills you learn will allow you to earn a higher salary as well.

Recommended Articles


How to Qualify for Any Credit Card, Even if You Don’t Meet The Qualification Requirements?

EPF March 10, 2020

According to our study, the average number of credit cards that Americans have increased from 2.5 to 4. And the trend shows the same – constant increase. People are load with so many promotions, bonuses, offers and they get card...


How a Lost of Only $1 Can Lead to More than $1,000 in Loses, if You Don’t Manage Your Credit Cards Correctly?

EPF February 27, 2020

Having multiple credit cards has a lot of advantages, but also a lot of disadvantages. The advantages are: You have money on the side. You don't pay any interest, in case you don’t use this money. And others... And many...

Recent posts