How To Use Your Credit Card Responsibly While Getting The Most Out of It

Credit cards can create an advantage or a disadvantage for you financially depending on how you use it. It's exciting right, when you receive your new and shiny credit card and I am sure there is that feeling that you would just love to go shopping with that available credit line - but before you go ahead and do so, read on to know how to use your credit card responsibly. 

Photo by Mikhail Nilov from Pexels

To get the most out of your credit card, here's a few tips I use:

First, before you swiping away an important thing to do is to read that fine print you agreed to, it may be a long series of paragraphs but for you to be able to get the most out of your credit card, it is always better to know what you are getting into. Know your due dates, interest rates as well as your penalties (hoping you will never need to pay one). 

Track your credit card expenses, this will allow you to avoid overspending - keep a digital note pad or even a notebook, it will do your credit wonders as well as your sanity when you receive that credit card bill (no one wants to be shocked). 

Look out for promos! There are so many credit card promos for online and retail shopping. some provide cashback offers, discounts and freebies if you use your card. 

Now, let's talk about being responsible, come on - you're an adult, you can do it:

Never spend, more that you can afford. It's easy to fall in the pit of "Oooooh, let me just swipe it now since I can pay later and pay in installment". You will always be tempted to buy that cute sweater online (which you probably don't need) then when you have an actual need versus a want - credit is not available and you run out of credit limit. Don't put that coffee on the card (unless there is an amazing promo), and pay in cash as much as you can. Your credit card is secondary in your finances. 

Aim to pay for your bills in full. When you pay in full this lessens interest rates and the potential of you getting delayed payments. If you cannot pay in full, at least pay a minimum amount each time. Not only are you avoid late fees but your credit score will look better. Every payday, I pay for my credit in full. 

Don't go applying for new credit cards frequently, not only may it be a chance to drown yourself in debt, this may also affect your credit score. I have always watched in a few movies where the character would be pulling out several credit cards to check which one has an available limit - imagine what the bills look like. 

Remember, using a credit card is like using money that is not yours so be careful, be wise and be responsible. 

Now, what if you already have several credit cards and paying them off has become an endless cycle, consider debt consolidation to help ease that process. Click here to know more about how to consolidate credit card your debt.

Do you have any additional tips? Let me know in the comments :)

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