15 Credit Card Do’s and Don’t’s

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Using a credit card for the first time can be daunting. It feels like having a power you can’t control and whatever you do has an effect. Credit cards are easy and convenient to use. You can shop for the latest gadgets, book a vacation outside the country, and you can use it to apply for loans when you need to.

Credit cards come with specific do’s and don’ts with their virtually limitless power to afford everything you’d want. These will help use your credit card without harming your credit score.

10 Credit Card Do’s to Keep in Mind

Do shop with your credit card, but wisely.

Credit cards are meant to be used. Your credit history won’t build up on its own so take the time to use your credit card for what you need. The more you use your credit card, the more perks, and advantages you get. But use your card wisely by choosing your transactions, especially those that have rewards.

Do use the same name when transacting.

Credit cards are a safe and secure option when transacting. When making purchases, always use the same name. Do write your name in full and legibly to avoid complications when reviewing your statements.

Do pay your dues monthly, eventually, annually.

Credit card dues come in monthly and eventually, annually, in the form of APR. These take the form of interest, transactions for the past month or months, and other fees included in your credit card. You can set up an automatic payment system to avoid missed payments that can follow up on your card.

Do view your credit card as a potential investment

Credit cards are helpful when it comes to building a credit history for future use. It can help you secure loans with ease. You can get many more perks when you have a good credit history, but it all starts with a good attitude over your credit card.

Do read the fine print before transacting.

Credit cards are safe to use, but transactions for credit cards can often be misleading. Develop the habit of reading before engaging in any transactions. Many shops offer 0% interest, but the payment scheme can be sketchy, or the installment procedure might not be for you.

Do check your statements regularly.

Monthly statements show your transactions. By checking it regularly, you can keep track of what you’ve spent as well as how much your current balance is. This way, you can control your subsequent spending so as not to trigger your credit limit.

Do pay more than the minimum.

Banks might require you to pay the minimum balance, but since some transactions garner more interest and fees, it’s better to be safe and pay more than your minimum balance to keep your credit flowing.

Do set a budget and stick to your limit. 

Credit cards have limits, referred to as credit limits. Set a budget for your credit card by allocating the right amount you need for credit card use. An excellent tip to keep in mind is to use your credit card on necessities. In this way, you’re sticking to your budget and your limit.

Do check your credit card perks and rewards.

Credit cards come with perks. Perks include waived fees, lower interest rates, and even insurances. Avail yourself of these perks as well as rewards. Rewards may come in points that you can redeem, airline miles, or cash backs from when you shop. Check your rewards regularly as some have expiration dates.

Do be careful and safely secure your credit card.

Secure your credit card so that no one else can use it. Your credit card can be used fraudulently, so it’s safer to ensure that whenever you enter your card details, you leave out the parts that others can access. Some online loan services that also involve credit cards, such as CreditNinja, will provide a safe and secure environment. They’ll do the worrying for you so you won’t have to think about anything else.

5 Credit Card Don’t’s

Don’t ever give out your credit card details to others.

Your credit card details are personal and private. Keep it to yourself unless initiated by you for a transaction. It’s easy for other people to control your credit card details and may lead to fraudulent activities if not kept secure.

Don’t ignore warning signs from letters or emails.

If you’ve received letters or emails regarding missed payments, credit trouble, or late payments, don’t ignore these. Contact your service provider immediately to ensure that these problems are fixed quickly. If you take too long to fix your credit card problems, your credit will be affected.

Don’t excessively spend more than you can afford.

Credit card transactions are made to be paid back. Don’t spend more than you can afford. This will lead to credit debt that will harm your credit if you plan on using your credit card in the long run. Use only your card for needs and use the extra money you have to pay for the charges.

Don’t miss a payment, or submit a payment late.

Paying late is a no-no when having credit cards. Paying late can significantly harm your credit score, and you will be charged with more fees, such as late payment fees.

Don’t hold any unpaid balance.

Credit cards are still loans that require continuous payment with each use. By letting your credit card balance sit, you are more likely to pay more interest with every month you let your balance unpaid. Always clean your credit card balance by paying off what’s left in it.

To sum it up

Always keep track of your credit card expenses, and make sure to keep your credit details safe from people who might hack it. Follow the terms and conditions of your card and adhere to strict use of your card. Limit your credit activities to your needs and choose the proper transactions to help your credit standing grow. These do’s and don’ts are just reminders for first time users to keep in mind. But your credit card is your card. You can do what you want with it — just be sure you can pay back whatever you spend.