You can pay later for goods and services using a credit card, which is one of the main reasons everybody wants one. Moreover, converting high-volume payments into short-term loans that accrue monthly interest is possible. But it would help if you were mindful of its use, as questionable card practices can push you further into debt. Here are the eight bad habits you should break while using a credit card. Not paying the total amount Delaying the full payment only adds to more spending on the accrued interest. It also affects your credit score and can potentially damage your credit history for any future loans. Making late payments Another bad credit card habit is paying past the due date, as the bank will levy penalties and extra fees. The rate of interest on future payments also increases. Overspending through installments Banks charge a nominal interest for every installment, so the bill does not seem like much when you first look at it. But multiple loans can add up due to overspending on installments and severely pressure your planned finances. Not using your card regularly Not using your credit card is a habit as bad as using it too often. Unused credit cards score low in the credit rating system, so banks or credit unions may cancel such cards due to inactivity. Using credit cards over debit cards Credit cards should be reserved for major purchases only. Debit cards are a better choice for daily groceries since you can access the funds directly. Using credit for every expenditure means extra payments in interest on these purchases; using a debit card can avoid such charges. Applying for multiple cards Having many credit cards can be very tempting to use frequently. The low-interest offers on these cards can force you to rack up massive debt.

As defined by FICO (the leading credit rating agency), bad credit is defined as a score of less than 580. Your credit score may range between 300 and 850, and an excellent or good rating is often when the minimum score is 700. If you have a lower credit score, you may have to pay higher interest on loans and may not receive the best financial offers. One of the best and quickest ways to increase your score is to use a credit card. When you avail of the accurate card and use it correctly, you may be able to increase your score in a few months. Here are some of the best credit card companies if you have a lower score: Credit One Bank Visa Credit Card Several card issuers require you to deposit $200 or more when you apply for a card. However, this card from Credit One Bank is an unsecured product and does not require any upfront payments. You receive 1% cashback when you use this card for groceries, fuel, and satellite, cable, and Internet services. Additionally, you get a $300 limit, which increases as you responsibly use the card. Indigo Platinum Mastercard If you have ever applied for bankruptcy, the last thing you want is to apply for a credit card and be rejected as it further hampers your credit score. The Indigo Platinum Mastercard is an excellent option as it provides $0 cash advance fees during the first year. After that, the cash advance fee is applied at a high of 5% of the transaction value of $5. Milestone Gold Mastercard This is an excellent way to check your eligibility with the pre-qualification tool that suggests other options in case your profile does not match the requirements of this credit card. The company issues the card even if you have a previous bankruptcy, and the foreign transaction fee of 1% is among the lowest applicable in the industry.

Gift cards can be used to pay for several products and services across multiple platforms. Corporate gift cards, holiday cards, and even cash back cards are the most popular formats to redeem online or at kiosks. However, the process of redeeming them is anything but simple. And if not done correctly, you may miss out on many discounts and exclusive offers. Here are five common gift card mistakes to avoid while shopping. Buying from auction websites Gift cards can be used for several retail purposes. But never buy cards that are auctioned off from websites like eBay. You cannot verify the authenticity of these cards being sold online. Moreover, scammers can skim and track the magnetic data on such cards before they are auctioned off. Once you activate the card, scammers can also use it to avail of all the inclusive benefits. So it’s best to avoid buying from such auction websites. Consider only reputable retail and eCommerce stores that offer such redemption options. Keeping cards unused You might often end up receiving gift cards of no specific use. For example, somebody might gift you a $500 card that can only be redeemed for auto spares and accessories. Here, the best thing to do is exchange it on platforms where consumers can buy and sell gift cards. You can strike a deal with fellow customers who may want the auto gift card and is willing to exchange it for something that can be used for everyday shopping and lifestyle categories. Not keeping track of balances You might have several gift cards that are lying around unused after a few rounds of shopping. These cards still hold sufficient value that can be redeemed for your next purchase. But this is possible only when you know the exact value of the gift amount.

Filing your taxes can be stressful, as making mistakes during the process can cost you money. For instance, you may miss out on a large refund or owe more taxes, interests, penalties, or even an Internal Revenue Service (IRS) audit. Hence, it is best to prepare well from the beginning and avoid making errors in your returns, especially when you complete the process online. Here are ten tax filing mistakes to avoid. Not double-checking the basics Ensure your name, the name of your dependents, and your Social Security number are all entered correctly. And choose the correct filing status, as it can help you save more. For instance, some single people may qualify for favorable tax rates and perks if they meet the requirements for being the head of the household or a qualifying widow/widower with a dependent child. Not entering information as it has been reported to you (and the IRS) Wages, dividends, bank interest, and other incomes must be entered correctly and match the figures mentioned on Forms W-2, 1099, and K-1. Since these forms are also reported to the IRS, any mismatch with the government database can lead to trouble. It is a crucial tax filing mistake to avoid. Not entering items on the correct line Ensure your entries show up where you intend them to. For instance, do not enter your tax-free IRA rollover in the line meant for taxable IRA distributions. Tax software can help avoid these tax filing mistakes, but double-check these details before submitting the form. Automatically taking the standard deduction Automatically relying on the standard deduction could make you lose money. Instead, check for alternatives that give you more significant write-offs and itemize your taxes to save maximum on your tax returns. Not claiming write-offs you are entitled to It is a common belief that claiming a home office deduction may lead to a tax audit.

As anyone who has worked even a single day in their life knows, money is hard to make but incredibly easy to lose, and a major source of losing money is financial fraud. There are many types of financial fraud that one can easily fall prey to, including credit fraud, check-based forgery, and online transaction scams. So, it is important to stay alert and avoid some mistakes that can leave people vulnerable to financial fraud. Saving payment information online Convenience often trumps safety when it comes to online payments. Most individuals who use the digital payment avenue tend to save their credit card or debit card credentials online so that they do not have to physically type the card number, date of expiry, and cardholder’s name every time. However, this is a dangerous practice that must be avoided. The main risk associated with saving one’s card details on online payment portals is that cybercriminals may get hold of this information. This is why, cybersecurity professionals recommend people who frequently use online payments to check out as a guest and not press the “save this card for future transactions” option while making online payments. Skipping two-step authentication Two-step authentication involves payment portals asking extra security questions or one-time passwords (OTPs) while receiving payment credentials for online transactions. While this is mandatory in many digital payment portals, there are people who may skip it in places it is not mandatory. However, this is a common mistake to avoid to prevent financial fraud. Two-step verification ensures that a person properly authenticates and approves the financial transaction they are making on the payment portal. In this way, nobody except the person making the payment can do so as they have the secret “second layer of security” details that are needed to unlock the portal and make the payment.