When you’re knee-deep in bills, post-its and several different to-do-lists, it’s not uncommon to overlook certain fine lines and deadlines in your financial statements. Whether you have multiple accounts with different credit card companies or you prefer to keep your cards at a more manageable number, there are some mistakes that can be made regarding payments that might seem minor at first. After all, to err is only human, but some errors can get you nastily fined. One common example is the misunderstanding of credit card usage. Some deals and options seem to offer limitless spending opportunities, but some can turn out to be financial blunders that could put you in debt. Here is a collation of some of the most common errors according to an article by Erin Peterson of Creditcards.com:

• Late Payments
  Credit card companies are notoriously prickly about late payments — even a payment that’s late by a few minutes can pile up fees, interest charges and other penalties. Depending on how late the payment is, your card issuer may also report the problem to any of the credit bureaus, which can wreak havoc on your credit score. The good news, says Stacy Francis, president of Francis Financial, is that the error may be reversible. “You do have the option of giving the credit card company a call and asking them not to report it,” she says. “If you’ve generally been an on-time payer, they may waive the fees and not report it.”

• Missing a Payment
  Not only are you going to be slammed with fees, interest charges and other penalties when you miss a payment, but you’ll likely see a rise in your interest rates. If that weren’t bad enough, you’ll also have to contend with a significant hit to your credit report — about 35 percent of your credit score is based on your ability to pay bills on time. As a result, you’ll pay more when you try to get a loan. “Missing a payment has both immediate and long-term consequences,” says Clarky Davis, Care One Debt Relief’s Debt Diva. “You may be dealing with the fallout for years.”

• Maxing Out a Card
  Maxing out a card can have a serious impact on your credit score, since about 30 percent of your score is based on “credit utilization” — the amount of credit you’ve used relative to the amount you have available. More important, says Davis, is the fact that it likely signifies a distressing trend in your personal finances. “Maxing out a card may not have an immediate financial pull, but it’s a sign that you’re not budgeting or spending your money wisely,” she says. “It means you don’t have enough saved up to cover unexpected expenses.”

• Getting a Cash Advance
  It may feel like free money, but the truth is that it’s anything but: You’ll likely have a fee associated with the advance, and you’ll likely pay a higher interest rate than you would by using the card associated with it. “You also have no grace period,” notes Cunningham. “You’ll start accruing interest from the moment you get the money.” While these are all dangerous attributes in and of themselves, they’re not the worst part, says Cunningham. “When you start using cash advances, you have to understand why you’re using them as they’re likely symptomatic of a deep financial problem.”

• Debt Settlement Plans
  If you’re overwhelmed by debt, negotiating down your balance with the credit card company (also called debt settlement) sometimes helps you pay pennies on the dollar on your debt — but you’ll pay a steep price. First, there’s the tax hit you’ll take for the amount of debt that’s forgiven — it will count as income during that tax year. And your credit score will be decimated, so don’t expect you’ll be able to take out a loan soon after consolidation. Next to bankruptcy, debt settlement “is the most negative thing you can do to your credit score,” says Francis. (Petersen, 2009)

While these things can be avoided with full awareness of the terms and conditions of your credit card subscriptions, it would also be helpful to gain full knowledge of the inner workings of your finances. Entrepreneurs Accounting Academy now offers Financial Analysis Tools & Techniques seminar that goes beyond orienting you on your personal spending habits, but also guides prospective business-handlers who wish to have full control of their finances. We will guide you through the basic and current techniques that would make you confident when faced with number-heavy reports and statements, and never again will you be intimidated by reports full of numbers and data.

Reference: http://finance.yahoo.com/banking-budgeting/article/107996/how-bad-are-your-credit-card-mistakes?mod=bb-creditcards