I know everyone treats credit cards like their the PLAGUE! Credit cards are only bad when they are used negatively.
The user is why credit cards get people in trouble! Use them wisely and they can help you get out of a pickle.
Here are my top 10 tips to responsibly use credit cards:
- Choose a card with a rewards system.
- If you don’t get rewards, it’s not worth it.
- Use your card wisely. Don’t charge more than you’re willing to pay.
- Limit your transactions.
- If you want a department store card, be sure to get one that can be used as a regular credit card too.
- NEVER use more than 50% of your card, it can negatively affect your credit score.
- Pay the statement balance to avoid interest.
- Unless the card has 0% interest, pay off the statement balance so you don’t waste your money on interest.
- Use one card for ALL online purchases.
- Online purchases are usually the source of stolen credit card numbers! Select a card with a low limit ($1,000) so if your account is hacked they will get declined for any purchase that exceeds your available funds.
- If text alerts are available, USE THEM!
- This is a great way to keep track of your card activity without using an app or the website.
- Choose a card that can be frozen.
- If you have a bad habit of losing or leaving your cards places, you need one that can be frozen by the press of a button.
- Use an identity protection program to monitor all your accounts.
- There are many available but my personal favorite is IDShield because it not only offers identity protection but a private investigator if anything happens. All for a low rate.
- Keep two cards, one for emergencies/online purchases and one for daily use.
I hope these tips are useful to you! Please share this with anyone you think will benefit from this information. If I missed anything, tell me what I should add in the comments below!