1. Keeping Your First Credit Card Open
   Many people start with a student credit card during their university years. As you expand your credit options, it may be tempting to close that old college card. However, canceling your first credit card can negatively impact your credit history since its length is closely tied to your credit. Avoid this mistake and keep the account open.
2. Overlooking the Interest Rate
   Understanding your credit card terms is crucial in avoiding unpleasant surprises on your billing day. Although many credit cards have a purchase interest rate of approximately 20%, Canada also offers low-interest credit cards with rates below 12%. Take the time to read and comprehend the terms to make informed decisions.
3. Missing Payment Deadlines
   Credit cards essentially provide short-term loans, and timely payments play a significant role in determining your creditworthiness. Your payment history alone accounts for a substantial 35% of your overall credit score. To avoid damaging your credit, make sure to pay at least the minimum amount due every month.
4. Making Only Minimum Payments
   While it’s essential to make timely payments, relying solely on the minimum payment listed on your credit card statement can lead to mounting debt. If you find yourself struggling to pay off your outstanding balance, consider transferring it to a balance transfer credit card with low or no monthly interest. Some even offer introductory periods with 0% interest.
5. Overspending
   It’s easy to fall into the trap of overspending when using a credit card, but it can have negative effects on your credit score. Accumulating credit card debt increases your credit utilization rate, which compares the amount you owe to your available credit. To manage your spending, you can explore options such as balance transfer credit cards or debt consolidation loans. Another alternative is using prepaid credit cards that function more like debit cards, preventing you from borrowing money and incurring interest charges.
6. Reaching Your Credit Limit
   Approaching or maxing out your credit limit can harm your credit utilization rate, signaling that you may be over-leveraged. If you find yourself reaching your limit frequently, it’s crucial to start paying off your debt as soon as possible. You can also consider requesting a credit limit increase from your credit card provider.
7. Loaning Your Credit Card
   While it might be tempting to lend your credit card to someone else, it’s important to remember that you are solely responsible for paying off the charges. Failing to repay the debt incurred by someone else can negatively impact your credit score. To avoid this, never loan out your credit card unless you are willing to cover all the expenses.
8. Neglecting Rewards and Cash Back
   Credit card companies offer various rewards to attract customers, including travel rewards, program points, or cash back on your purchases. Failing to take advantage of these benefits won’t directly harm your credit score, but it means missing out on potential savings. Take the time to research and choose a credit card that aligns with your spending habits to maximize the rewards.
9. Applying for Multiple Cards Simultaneously
   While credit card rewards can be tempting, applying for multiple cards at once is not advisable. Each application can impact your credit score, and multiple inquiries may signal financial instability to creditors. It’s best to space out your applications and carefully consider the number of credit cards you truly need. Additionally, annual fees on multiple cards can quickly add up, so consider no annual fee credit cards that also offer rewards.
10. Not Carrying a Credit Card
    Although credit cards come with potential risks, not having one is a mistake that can hinder your financial opportunities. Building a credit score is essential for obtaining loans, purchasing a car, or securing a mortgage. By using a credit card responsibly and paying off your balance regularly, you demonstrate your trustworthiness to lenders and boost your credit score over time.

In conclusion, using credit cards wisely can provide significant benefits, such as rewards and cash back, while avoiding costly mistakes. Remember to make timely payments, understand the terms and interest rates, and leverage credit cards responsibly to improve your financial standing. If you have bad credit, consider utilizing a credit card designed for building credit and work towards improving your score.