How To Use Your Credit Card

Use your credit card statement as a monthly financial health check.

How to use your credit card. Most credit cards allow you to view your account activity online. You may also be able to download a mobile app that allows you to quickly check your balance on your phone. Credit cards are easy to use. Late payments which appear on your credit reports are a red flag to lenders. You can also add your card to digital.

Choose credit card as your payment method. If your credit card issuer fails to meet your needs for any reason don t hesitate to end the relationship and move on. It will maximize the average length of your credit history. And paying late means you ll also owe late fees and interest. Other options could include debit card paypal and bank transfers.

Monitor your activity. The most important rule of responsible credit card use is to pay your bill on time. You may also be required to select whether you have a visa mastercard or american express credit card. If you go into a store for instance you may be prompted to insert your card in a chip reader or swipe it at the checkout. Here are some basic guidelines on how to do that.

Pay as much of your credit card balance as you can afford each month. You will be prompted to choose how you want to pay. If your credit card gives you this ability sign up so you can monitor your credit card balance and pay your bill online. Use your credit card as a compliment to your budget. But these kinds of financial health benefits only work if you prudently manage your credit use.

Build your credit score. If you find that you need to use your credit card to make a single large expense that will put you over your credit limit contact your card issuer regarding your overdraft options. When you shift your spending to a different card try to keep your dormant account open until the annual fee if any is due. This strategy usually involves creating a written budget then using your credit card for purchases until you work through your predetermined spending limits. If you re in good standing and have a history of responsible use some credit card companies will agree to pay for a purchase that technically causes you to overdraft spend more money than you are allowed.