How to be a responsible credit card owner

7 good credit card habits that you should have.

 

7 good credit card habits that you should have

Having a credit card can go two ways: you can either become a responsible holder who charges only what they can afford and pays their bills on time, or you can be buried in accumulated debt due to your irresponsible ways.

To prevent property repossessions in Salt Lake City and other areas with a lot of retail debt, here are some credit card habits that you should start learning now:

1. Charge what you can afford:

This is the most critical rule of owning a credit card, yet it is often the most ignored. When you’re out shopping, it can be tempting to charge that thousand dollar pair of shoes on your card, even though you only have a few dollars in cash to your name at the moment. Simply put, you can’t afford it. And charging what you can’t afford to your card is a cycle of irresponsibility that you can easily fall into.

2. Stick to your budget:

Every month, set a budget for your needs and wants, and then stick to it. Living within your budget will leave you with enough money to pay your bills, most notably your credit card bill.

3. Use only a few cards:

Having multiple credit cards is the best way to dig yourself into a financial hole. The more cards that you have, the more tempting it is to charge everything on them. So to prevent yourself from accumulating a colossal debt, use only one or two credit cards.

4. Pay your bills in full and on time:

One of the best ways to build good credit and avoid debt at the same time is to pay your bills in full and on time. In this way, you can avoid late fees and higher interest rates that come with not paying your credit card bills. Of course, it is much easier to pay your bills if you can afford them, so again: stick to your budget. Also check out these 4 ways to prevent debt.

5. Track your expenses:

As a responsible credit card holder, you shouldn’t be surprised every time you open up your billing statement. Make sure that you track your credit card expenses every month so you can fully expect what you owe at the end of each billing cycle.

6. Never lend your credit card:

For obvious reasons, never lend your credit card to anyone; even your closest friends and family. If you must assist them financially, do so with cash.

7. Practice delayed gratification:

A credit card can instantly grant you what you want. In some cases, this can be beneficial. But more often than not, this instant gratification can lead to unhealthy spending habits, which will eventually bury you in debt. When using your credit card, think twice or thrice before buying what you want.

Having a credit card can be a great opportunity to build your credit score. But if you use it irresponsibly, it can do the exact opposite. Take these tips to heart to avoid racking up debt and risking your financial stability.

 

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