Credit cards are widely used and accepted and the current trend of using credit card has made it a necessary evil. These plastic cards are of great use when in financial need or when we run short of cash. However, the cash back offer and reward points also tempt us to make more use of it. Many individuals use credit cards, but it depends on how smartly you use or you get fooled using it. Here are some ways which you should avoid using credit cards: 1) Not more than one Credit Card Holding credit card is good but having more than one can negatively impact your finances. Having more than one credit card will make it difficult to track balances and statements even points you have earned. 2) Paying only Minimum Balance each month Carrying forward each month balance amount will definitely hurt your CIBIL score. Moreover, you need to pay interest on the amount and late payment fees to the bank. If you are not able to pay your balance each month, it means that you should cut your spending. 3) Closing Old Accounts If you are planning to improve your credit score and build your credit history, closing of old accounts is a wrong decisions. But you may think of getting rid of old accounts, which is a better option. Because old credit history is actually good for your score. 4) Neglecting Safety Issues If you are an online shopper then make the most use of your credit cards, though you should be careful with your credit card safety. Here are few tips to save you from credit card frauds. 5) Redeem Reward Points One must always keep track of cash back offer and reward points accumulated in the account. If the points are not used in the mentioned period it is said to be lapsed. One can check the bank reward points catalog and plan the spending accordingly. 6) Use at right place Now, with ease one can use the credit card to pay utility bill and premium payment rather then spending on luxury. By paying such bills you will block you credit with necessary spending.