How to Use Credit Cards

by Laura P on February 9, 2009

Remember your money is involved. You eventually have to pay the amount you spent back plus interest. Cash advances typically have a higher interest rate than standard purchases. I learned this the hard way. I feel so stupid knowing I spent YEARS paying off a card filled with stupid charges.
Review your monthly statements. Identity theft is becoming more common and a good habit is to look at your statements every month. Sometimes credit card companies make mistakes on charges. I login to my credit card account every couple of days to see if anything suspicious happens. I need to work on checking my paper statements.
Pay your bills on time. A good credit history can help when looking for a home as a higher credit score leads to lower interest rates. I had a bad habit of losing paperwork, so I automated all my bills. It saves on late fees and stamps. Many banks have online bill payas a feature.
If you can, pay the full amount owed. Credit card companies might call you a “deadbeat“, but at least you’re not tied to them each month. If you can’t, then pay as much as you can. Try a debt snow ball or even snowflaking. Find money in your budget to eliminate your debt.
NEVER, EVER lend your credit card to anyone! Even if it is a trusted family member or family. This account is tied to YOU and you will be held responsible.

These are some things I learned through personal experience. How many credit cards do you use? Which cards do you use (cash back or rewards)?

Reprint from my personal finance blog