How to be Responsible with Your Credit Card

Credit cards have their benefits – building your credit score, earning rewards, convenience and more. They can also be dangerous if not used correctly. Since people often tend to spend more using credit cards rather than cash, it’s easy to get in over your head without realizing it. Keep reading to find out some great ways to be responsible when using your credit card. 

Don’t Spend What You Can’t Afford 

Just because credit cards allow you to buy things without having the money doesn’t mean it’s a good idea. Trouble, debt and stress all start building up when you realize you can’t pay for what you spent. The easiest way to stay out of credit card trouble is to simply never make purchases you can’t afford at that moment.  

Pay on Time 

Building good credit comes down to paying your credit card bills on time so lenders can see you are reliable. Do this by always paying your bill before it’s due so you’re not scrambling to pay at the last minute, as well as avoiding late fees. 

Go for Low-Interest and Low-Fee  

Before even getting a credit card, make sure you read the cardholder agreement to see what you’re signing up for. Look for a credit card with a low interest rate as well as a low annual fee so you can make the most of the credit card you use. 

Don’t Go Over Your Limit 

Over limit fees can sneak up on you if you’re not careful. Going over your limit can lead to charges and can hurt your credit rating as well. Make sure you know your limit and are staying well under it, so you are prepared for emergencies. 

Get Fraud Protection 

Credit cards can be hacked, but the good news is that credit card fraud protection is available. This way, if your card is hacked, you don’t have to pay for those charges.

Ask for Help Right Away 

If you’re struggling with credit card debt, reach out and get help before it gets worse. There are many people you can talk to such as finance professionals, credit counselors or your bank. These people can guide you in the right direction so you can take steps towards avoiding, getting out of and staying out of credit card debt. 

While using credit cards irresponsibly can lead to scary consequences, taking these smart steps will help you make the most of your credit card. Having good credit is extremely beneficial for your future, so don’t be afraid to use your credit card wisely. 

Exchange Bank of Northeast Missouri

Member FDIC

Equal Housing Lender