11 Credit Card Tips You Should Know

When choosing the right card, there is a lot to think about, from interest rates to rewards programs and credit limits.

1. Apply for a Credit Card that you’ll get approved for

There are a few things to consider when you’re looking for a credit card that you’ll get approved for. First, make sure you have a good credit score. If you don’t, you may want to work on improving your credit before you apply for a credit card. You should also apply for a credit card that fits your spending habits. If you tend to spend a lot on dining and travel, look for a credit card that offers rewards for those expenses.

2. Do not apply for many cards at once

When you apply for multiple credit cards in a short period of time, it can have a negative impact on your credit score. Each time you apply for a new credit card, the issuer will do a hard inquiry on your credit report. This hard inquiry can lower your score by a few points.

3. Pay Off Your Entire Balance Each Month

Paying off your entire balance by the due date each month has several benefits. First, it means that you won’t pay interest on your credit card purchases. Second, it can help improve your credit score by showing that you are a responsible borrower who pays their debts in full and on time. Finally, it can help you avoid late fees.

4. Keep Your Credit Utilization Low

When you keep your credit utilization low, you are essentially showing creditors that you are a responsible borrower who is not maxing out their credit lines. This can lead to lower interest rates on your accounts and increased limits and access to new lines of credit. In addition, maintaining a low credit utilization ratio can help improve your credit.

5. Pay more than the minimum payment

If you only make the minimum payment on your credit card each month, it will take you much longer to pay off your debt and you will end up paying much more in interest. Pay as much as you can afford each month to get out of debt faster and save money on interest.

6. Use Spending Analyzer to Calculate Your Budget

If you're trying to get a handle on your spending, using a spending analyzer from your credit card issuer can be a helpful tool. This type of analyzer can give you insights into where you're spending your money and can help you identify ways to cut back.

7. Maximize The Benefits from Rewards

Find the right rewards card for you

There are a lot of different rewards cards out there, so it's important to find the right one for you. The best way to do this is to think about what kind of rewards you're looking for and then find a card that offers those kinds of rewards. For example, you might want a card that offers travel rewards if you travel a lot.

Use a rewards card for your spending

If you're looking for additional benefits on your purchases, using a rewards credit card for your spending is a good option. The more you spend, the more rewards you'll earn, which can be used to offset future expenses.

Combine cards

One way to get the most value out of your credit cards is to combine the benefits of different cards. For example, you can get a cash back card and a rewards card. By using both cards, you can earn cash back on your purchases and get points that can be redeemed for travel or other rewards.

8. Save On Interest with Low APR Offers

If you want to save on interest, you should try getting a credit card with a low APR. This way, you will not be paying as much in interest, and you can save money in the long run. Make sure to compare different offers before you decide on one to get the best deal possible.

9. Use Autopay to Avoid Late Payments

Credit card late payments can have a major impact on your credit score. Payment history is an important factor in determining your credit score, so even one late payment can cause your score to drop significantly. If you're frequently late with your credit card payments, it can indicate to lenders that you're not a reliable borrower.

To avoid this, you can use autopay to ensure your bills are paid on time. Autopay is a feature that allows you to automatically pay your bills from your checking or savings account. This way, you don't have to remember to make a payment each month.

10. Use Credit Cards for Needs, Not Wants

When it comes to using credit cards, it may help to remember to use them only for needs, not wants. This is because credit cards can quickly lead to debt if they're not used carefully. If you use a credit card for a want, you may end up spending more than you can afford to pay back.

11. Check your credit reports regularly

It's important to check your credit reports regularly for errors. You can order your free credit report from major credit bureaus once a year.

Additional Resources

Utilize these resources to help you assess your current finances & plan for the future.

Learn how FICO® Scores are determined, why they matter and more.

Review financial terms & definitions to help you better understand credit & finances.