How To Use Your Credit Card Wisely


There is no denying the fact that credit cards are a great tool to manage finances and conveniently pay for the things you want to purchase. However, owning a credit card comes with great responsibility and its own set of challenges. Careless usage of a credit card can lead to unnecessary debt, high-interest charges, and a huge dent to your credit health as well.

  • Pay Your Credit Card Bills On Time

If you really wish your credit card to work for you and not the other way round, don’t make the mistake of carrying a balance on your credit card. Remember to pay your bills in full (not minimum dues!) time every month, and you will be sorted as you wouldn’t have to pay a penny in interest or late charge fees.

Expert tip

Keep a tab on your credit card spending by accessing the account online. Also, setting up an automatic payment plan ensures that you never miss any payment deadline.

  • Track Your Spending

One rule of thumb while using a credit card is to never spend more than what you can afford. Irrespective of the type of card you use, it can be very easy to pile up debt on your card, which will be difficult to repay later. It is, therefore, important to limit your spending within your means by staying in control.

Expert tip

Set a limit on your monthly credit card spending so you don’t end up using more than what you can afford.

  • Always Stay Well Under Your Credit Limit

The credit limit on any credit card is defined as the maximum amount that can be charged, which includes purchases, finance charges, cash advances, etc. This limit is based on various factors such as the credit history of the individual, income, and spending, etc. Ideally, the credit utilization rate on your credit card should not exceed the 30% of the total limit mark, so as to build a strong credit history.  To put it simply, never commit the mistake of exhausting your entire credit limit as it can seriously question your repaying ability and negatively impact your credit score in case of non-payment.

Expert tip

Keep in mind that every credit card is different, having its own credit limit, billing cycle, payment date, and grace period. What you need is to review the information for your credit card, keep a check on using your credit limit, and understand how it specifically works in your case.


We all enjoy the convenience, and the benefits that owning a credit card brings with it. However, the chances of hard-to-manage credit card debt can be a serious headache for those with irresponsible financial habits.

Remember that credit cards can be an extremely valuable tool for managing your spending, enjoying the rewards, and financial flexibility only if you use them responsibly and to your own advantage.

Leave a comment

Your email address will not be published.

Blog Feed

© MoneyHub 24/7, All Rights Reserved 2019-21.