The DOs and DON’Ts of credit cards
Credit cards can be a great tool to help manage your finances. However, they can also make it easy to overspend. When you use your card, you must pay for what you buy. Follow these tips to stay out of credit trouble.
- Pay the balance in full every month. If you can’t pay the full balance, pay more than the minimum payment so you reduce your principal balance faster.
- Pay your bill on time.
- Use your card only for emergencies or for purchases you can afford to pay for that month.
- Limit the number of cards you have.
- Keep copies of receipts that are charged and compare them to your statement.
- If your card is stolen, immediately report it to the credit card company.
- Sign up for a credit card to receive a gift. Even if you don’t use the card, it can affect your credit rating negatively because you have more credit available to you.
- Spend on impulse.
- Spend up to the maximum credit limit.
- Share your credit card or account information.
- Open additional cards to pay off other debt.