Credit cards are often the first step to build a strong financial future and establish your credit score.
That is why it is important to learn how to use a credit card responsibly before you end up with a mountain of debt.
1. To avoid accumulating high interests, pay off your balance in full every month. Enjoy without interest charges.
2. Stick to a budget even with a credit card to avoid overspending. Keep a tab on what you really want to spend on.
3. Using your credit card only for your needs rather than your wants will help keep unnecessary purchases in check.
4. Stay under 30% of your total credit limit. Staying within the 30% limit will help you manage your money better.
5. Check your statements regularly. Review monthly transactions to catch any errors or unauthorized charges.
6. Consider keeping them open even if you don't use them. An active credit card helps keep your score intact.
Credit cards can be an amazing financial tool to build your credit journey if you use them responsibly.