One of the most common mistakes that beginners make with credit cards is charging more than they can afford.   At first, a credit card seems magical.  You can purchase almost whatever you wish, without having to spend any of your money.  This mentality is why many beginners max out their credit card within only a few months of receiving it.   The best rule of thumb is to charge only what you can afford to pay.  It may sound contradictory to the theory of a credit card, but it is the best way to keep your head above debt waters.

Another credit mistake that beginners often make is getting too many credit cards during a period of time.  With all the pre-approved offers in the mail and store clerks asking you to get their credit card, it can be tempting to open several credit cards at one time.  Many beginners think the more credit cards they have, the more they will be able to spend.  While this is true, there is another side to that coin.  The more you spend, the more you will have to pay.  Chances are if you have several cards with balances, you will run into some difficulty making the payments.  One or two credit cards are sufficient for someone just starting their credit history.

Paying the minimum payment only gets many beginners into more debt than they expected.  When you make only the minimum payment it usually covers the interest and a small amount of the credit card balance.  It could take years to pay off a balance as low as $300 when you pay the minimum payment.  Although you don’t have to pay the entire credit card balance every month, you should pay a little more than the minimum balance.  This is especially true if you are continuing to accrue new charges.