Credit Card Do's and Don'ts
Credit Doesn’t Have to Be Complicated
Navigating having and using credit cards, paying off your balance, interest, debt, and how it all affects your credit score can seem overwhelming. Without knowing how credit cards work, you can get stuck in debt and it can be hard to get out. Knowing the do’s and don’ts of credit cards can help keep you out of debt and raise your credit score.
Credit Card Don’ts
Applying for too many lines of credit in a short period of time can make it appear that you have fallen on hard financial times and affect your credit score. Don’t apply for a credit card without knowing the APR as some companies can have high interest rates, making it hard to pay off your debt. Don’t let your balance exceed more than 30% of your available credit. Credit card rewards can be great, but don’t chase them too much as they are usually worth less than the interest you accrue if you don’t pay it off.
Credit Card Do’s
Pay more than your minimum payment, because the lower your statement the lower your credit utilization ratio and the less likely your credit will be affected. Always pay on time, either on or before your due date. Avoid using your credit card for everyday items like groceries. Small items can add up quickly if you don’t pay off your balance and you get hit with interest charges. Become familiar with your card’s terms and agreements so you don’t get unexpected fees or penalties.
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