What You Need to Know About Smart Credit Card Use

Are you applying for a credit card for the first time? Having a credit card will open many doors for you, especially if you’re trying to prepare to make big purchases, like buying a car or taking out a mortgage. Here are a few things you should know about smart credit card usage to prepare you for the future.

Always Pay it Off

First, make sure that you always pay off your credit card. This is one of the most essential steps of having a credit card. Even though having a credit card might feel like you have free money to spend, paying more money on your credit card than you have in savings can be a dangerous habit. If you don’t pay off your credit card, you can be penalized. 

Your credit score will drop, showing lenders that you aren’t very good at keeping up with payments. Also, your credit card might get revoked and it might be more difficult to get another credit card in the future. As a good rule of thumb, try to use your credit card like a debit card. Try to only purchase things that you have the money to pay for each month as your payments are due.

How to Increase Your Score

Next, to use your credit card in a smart way, you’ll need to know how to increase your credit score. Your credit score reflects how good you are at keeping up with payments and managing your finances. If you have a great credit score, you can qualify for better credit cards with more extensive rewards and benefits. 

You’ll also have better luck getting a car or house loan or making other big payments. One of the most essential parts of increasing your credit score is always making your payments on time. Payment history, which includes missed payments, makes up 35% of your score.

Don’t Max Out Your Credit

Finally, if you want to be a smart credit card user, make sure that you don’t max out on your credit card. You have an allotted amount of credit that you can spend at one time, and you should try to avoid spending up to that credit limit. Generally, you should try to avoid using more than 30% of your available credit before you pay it off. If you max out your credit, your credit score could get lowered. Your credit score is also determined by how you utilize the credit that is available to you, and if you’re often maxing out on your card, that will show that you can’t utilize your credit very well. This could hurt your credit score. 

So, if you’re applying for your first credit card ever, remember these tips for smart credit card usage. Make sure that you always pay off your credit card, know how to increase your score, and don’t max out on your credit. This will help you to have (and demonstrate) greater financial stability and management with regard to your credit card.

Did you enjoy this article? Here’s more to read: What You Should Know About Social Drinking

Posted in
IDF forces tunnel

IDF Underground Iron Dome is used to fight Gaza Tunnels

By Andrea Kay | March 24, 2016

IDF forces have been working with Americans to build specialized tunnels designed to dismantle the ones built by Hamas. Last week Foreign Policy reported that the…

Trump food storage emergency preparedness guns

Emergency Preparedness, Food Storage, and Gun sales may surge under Trump Presidency

By Andrea Kay | March 24, 2016

Food storage, emergency preparedness products and guns sales surged when Obama was elected president. Right wing conservatives were worried that an Obama administration would weaken…

Inbox Dollars Review – What is InboxDollars?

By Andrea Kay | March 24, 2016

InboxDollars Online Surveys What is Inbox Dollars? It is a loyalty rewards program that pays people for their everyday online activities. Inbox Dollars connects…

obama cuba visit akward

Obama seeks hope and change in Cuba

By Andrea Kay | March 23, 2016

Obama made history this week as he was the first US president to visit the communist island of Cuba since 1928. During his visit…

global test market survey review

Global Test Market Online Surveys Review

By Andrea Kay | March 23, 2016

Global Test Market, the largest online survey service is expanding. Since their start sixteen years ago, this company has grown globally connecting businesses and…

san bernardino terror iphone unlock FBI

Is FBI getting help cracking San Bernardino terror iPhone from Israeli firm?

By Andrea Kay | March 23, 2016

The FBI is working with Cellbrite, a mobile data recovery firm from Petah Tikva, Israel as reported by Yedioth Ahronoth. Cellbrite provides mobile forensic…

mason wells brussels boston bombing survivor

LDS Missionary Injured in Brussels Attack was at Boston Marathon Bombing

By Andrea Kay | March 22, 2016

Mason Wells, a 19 year old Mormon Missionary was seriously injured in the Brussels airport terror attack. The young missionary was close the the blast…

AIPAC – Netanyahu Links Brussels Attacks as Threats to Isreal

By Andrea Kay | March 22, 2016

Israeli Prime Minister Benjamin Netanyahu has tied the recent terrorist attacks in Belgium to attacks in his country via satellite to the annual policy…

shotgun

IDF Weapons – Remington Shotgun used for breaching

By Andrea Kay | January 19, 2016

Shotguns used to typically be known as fowling pieces used for mainly killing birds. They fire projectiles called slugs, or they can fire round…