Is there something I'm doing wrong. It always does this where the bead and the swivel meet. You can use heavier line at that point or check your beads.
Most plastic beads are rough and many have sharp edges.
The best glass beads are found in arts and craft stores. They are more expensive than plastic but typically very smooth near the hole. You can also get iridescent beads that seem to change color depending on the angle you view them. Glass beads found in fishing stores are overpriced. Good luck with your c-rigs.