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Tips to Make Better Use of Your Credit Card


A credit card gives you the illusion of having money available for you to spend as you like. But truth it, you must use it wisely not to end up in debt or a complicated financial situation! Here are a few simple tips to help you make a better use of your credit card.

Pay It Off Steadily

Be reliable about your credit card payments. Try your best not to miss one! If you notice that you missed a payment or if you know that you will miss one, contact your credit card company and let them know about it. It is always best to stay in good terms with your creditor!

Make The Biggest Payments You Can Afford To Make

While it may seem appealing to make only the minimum payment every month, in the long run, you’ll be the loser. You’ll pay off your debt more slowly and will end up paying a lot of interests. Try and make the biggest payments you can possibly afford to make every month.

Don’t Use It For Every Purchase You Make

Food, clothes, drinks, etc. All those little everyday purchases should not be made with your credit card. If you get the habit of buying every thing and anything with it, it’ll lead you to debt very quickly. Take the habit of withdrawing cash and using it for your everyday purchases, and leave your credit card at home! By doing this, it’ll be easier to budget your expenses.

Don’t Use It To Buy Stuff You Can’t Afford

Keep in mind that credit is, technically, money you DO NOT have. Even though that $800 is accessible by one flick of the wallet, if you spend it now, you will have to pay for it sooner of later, and with interests. Be smart about your money and ask yourself if you really have the means to afford that flat screen TV of this trip to the mountain for a weekend.

Keep You Balance Low

In an ideal world, you would stay within 30% of your credit balance. While everyone knows that it is much easier said then done, try to keep in mind that the lower your balance, the lower your interests, the better your credit score.

Caroline Simpson is a writer; a translator and a travel addict who’s always looking for ways to make life easier. She works as a freelance blogger for Standard Life, a leading long-term savings and investment company providing, among other services, advices on retirement planning.



My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

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