Seven Rules for Using Credit Cards
March 18, 2025
Credit cards are a great way to build your credit history and improve your credit score, but they come with some pitfalls that you’ll want to avoid.
Successfully using credit cards requires proper planning so that you don’t end up with piles of debt at bad interest rates as a result of overspending.
- Have at Least Two Credit Cards
- Pick the Right Type(s) of Credit Cards
- Keep Balances Low and Pay Your Bill in Full Each Month
- Know Your Interest Rate
- Don’t Use Balance Transfer Cards for New Purchases
- Avoid Closing Old Credit Card Accounts
- Devise a Plan To Keep All Credit Card Accounts Active
If you follow these rules and use credit cards responsibly, you can build a good credit score that will benefit you throughout your life when it comes time to apply for things like an auto loan or home mortgage.
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