Using credit cards can be daunting, especially if you’ve had bad experiences in the past. Debt is not always harmful, though, and using credit cards responsibly can increase your credit score while offering you many benefits. Use our tips to make your credit card your friend – not your foe!
Pay the Full Balance
Credit card law number one: pay that balance off in full every single month. If you leave a balance on your card, interest can quickly overwhelm you.
Make a Budget
As with other payments, keep track of how you use your credit card. If you are nervous about being able
to pay the balance in full, give yourself a very small limit at first and stop using your card once you reach it.
Keep It Under 30 Percent
Your credit rating will actually take a hit if you use your entire credit limit every month. Keep your monthly bill under 30 percent of your limit to help your credit score and keep your spending in check.
Look For Benefits
Using credit cards can make you money if you use them responsibly. Look for cards that give benefits such as cash back or travel miles to make your money work for you.