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3 Tips About Proper Credit Card Use


If you are like most individuals, you will rely upon your credit cards to a certain extent to pay your bills and manage your financial affairs. Still, irresponsible use of these plastic gadgets can actually have some dire consequences upon your credit rating and even your overall lifestyle. Let’s take as look at three handy tips that will help you successfully manage these cards and keep your financial position secure.

Watching Your Credit Limit

It can be tempting to use a card to pay for rather large purchases. When you apply for credit card, make sure that you’ll practice caution when making purchases once your application becomes approved. The rule of thumb here is to stay within thirty per cent of your monthly credit limit. In this way, it is unlikely that you will find yourself “overstretched” and unable to pay your balance.

The Importance of Interest Rates

Many online sites that offer professional advice will stress the need to encounter amenable interest rates. You should never forget that these rates will naturally determine the overall amount that you will be responsible to pay. Still, it is frequently the case that interest rates are not necessarily “set in stone”.

Speak to company personnel and see if you are able to obtain a slightly better percentage in your favour. You are likely to find that the company has a certain amount of leeway in this matter. This will especially be the case if you already have a strong credit rating. While it is unwise for you to expect them to move financial mountains, even a slight modification of a base point or two will be beneficial to your position in the future.

Keep an Eye on Your Statements

Your credit card statement is the single and most valuable tool to help you correctly manage your finances. Check your balance and make sure that it is within the previously mentioned thirty per cent of the overall limit. If you ever have any questions in regards to this statement, contact the provider immediately to sort out a small issue before it potentially turns into a major problem.

These are three of the best ways to keep yourself “in the green” with all of your credit cards. Of course, there are other methods that prove just as wise. Still, safely and responsibly managing their use is an excellent way to keep all of your finances in order.



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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