3 Effective Tips to Use Your Credit Cards Wisely
Be responsible
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When it comes to having multiple credit cards, you must require more responsibility from yourself. Falling into the rabbit hole of consumer debt is something that you never want to face. In making sure that you are responsible and using your credit cards to your advantage, you will always benefit from them, and your FICO Score will benefit too. The following three effective tips will help guide you on using your credit cards wisely so that you can always benefit from them:
1. Always Pay Your Full Monthly Balances
2. Use Your Credit Cards for the Majority of Your Purchases
3. Remember to Use Your Rewards
1. Always Pay Your Full Monthly Balances
Paying your full monthly balances is something that you always must do. As stated earlier, you do not want to fall into the rabbit hole of consumer debt. Every major credit card issuer offers some form of automated payment for your monthly balances, so make sure that each of your credit cards has it activated so that you do not have to worry about paying them off manually. Your payment history makes up the majority of your FICO Score at 35%, so make sure to pay your full monthly balances all the time.
2. Use Your Credit Cards for the Majority of Your Purchases
The last time I used a debit card to make a purchase was in 2018. Since then, I have strictly used credit cards for the majority of my purchases. When I cannot use a credit card, I use cash. Making sure that the majority of your purchases are done via credit cards allows you to benefit from things such as fraud and purchase protection. Additionally, you will earn more rewards by making sure you use your credit cards as often as possible.
3. Remember to Use Your Rewards
The main goal for having multiple credit cards is to gain rewards. Those rewards are typically either cash or travel points. When you start accumulating tens or hundreds of thousands of points, make sure you start to use them to either assist with paying off your monthly balances or reduce the cost of traveling domestically and internationally. Most credit cards from major issuers do not have rewards that expire but remembering to check on your rewards and use them will remind you of the key reason why you have your specific credit cards.
Credit cards are meant to benefit us, not deflate us financially. By using credit cards wisely, you will only be able to benefit from them. Let me know what additional tips you have used to benefit as much as possible from your credit cards.
