With April, comes one of the best days, April Fool’s Day. On this day it is okay to be a “fool.” It’s also a day where jokesters have a lot of fun and cause a good bit of mischief. But one area where you don’t want to be a fool? Your credit. So don’t be a fool and read on to learn more about four common credit mistakes you need to avoid.

Given the easy accessibility of credit in the US, there are some credit traps that can be tough to avoid if you aren’t careful. Here are four of the most common credit mistakes and how you can avoid them:

Mistake #1: Payday loans and cash advances

Payday loans and credit card cash advances are always a bad idea. Always. They come with ridiculously high interest rates, on top of other fees. Unfortunately, due to the high fees, these types of debt often become cyclical, with borrowers being forced to take out a new one each time the previous one is paid off, just to make ends meet, and making it difficult to ever crawl out from under the debt. Do yourself a favor and avoid this type of predatory lending at all costs.

Mistake #2: Maxing out your credit cards

While the algorithms credit card companies use to calculate credit scores aren’t made public, it is estimated that around 30% of your credit score is based on your rate of credit utilization, meaning how much credit you use versus how much is available to you. If you consistently carry balances on your credit cards that are more than 50% of your available credit, your credit score will take a serious hit. Be sure to use your credit cards wisely and don’t carry balances that are more than half of your existing credit line.

Mistake #3: Making minimum payments

Making only the minimum payments on any debt with an interest rate is a serious and costly mistake. Depending on the amount of the debt and the interest rate, paying only minimum payments will add hundreds or thousands of dollars to the amount you pay back over time. Do yourself a favor and get into the habit of paying more than just the minimum payment–even if it’s only a few dollars more–anytime you can’t pay off a balance in full.

Mistake #4: Using credit to supplement income

Credit cards should be used as a convenience, not as a means of supplementing your income. Credit cards are great for things like travel or large purchases. Purchasing those items on a credit card provides added benefits, like additional protections and insurance, depending on the card used. You should not be using credit cards for things like gas and groceries, if you don’t have the funds to pay for those goods immediately. Using credit cards to pay for necessities indicates you are living beyond your means and putting your financial future at risk by living on debt.

Although these four mistakes are not the only ways in which people hurt their credit, they are some of the most common. Now that you’re aware of the pitfalls, you can avoid making these foolish mistakes and protect your financial future.

If you have found yourself in any of these situations, the only thing “foolish” is not doing something about it. Call NCF at 877-720-7587 to discover how we can help you repair your credit and move towards a better financial future.