Credit Cards – 3 Ways to Use Them Smartly

How to use your credit card smartly
How to use your credit card smartly

Due to the current financial climate, credit cards have become increasingly popular amongst people around the world. Unfortunately, the majority of users get into trouble with their cards, mainly because they are using them in the wrong way.

They use their credit card to make purchases which are unnecessary and then quickly find that they reach their credit limit, which then leads to them struggling to pay the minimum payment every month.

In order to avoid such a situation yourself, it pays to use your credit cards in a smart way.

Shop around

Firstly, it always a good idea to spend a bit of time researching the different credit cards before you make a decision on which one to choose. Not every credit card is created equal, and some have higher interest rates than others.

The best way to find the perfect credit card for your needs, is to visit a comparison website which lists the main features of each credit card side by side. This allows you to easily compare the advantages and downsides of each one, and then make a choice based on this information.

Pay off the full balance

Let’s face it, the majority of credit card users spend all of their credit limit and are then stuck paying the minimum payment every month. This not only affects your credit rating, but also ensures that you’ll still be paying off the balance many years down the line.

Instead, learn to be smarter about using your credit card, by paying off the full balance every single month. Doing this will make you think twice about making a purchase, so you can stop using the card for unnecessary items.

Also, it will have a positive effect on your credit score, meaning you’ll always be able to get a loan with favorable interest rates in the future.

Avoid late payments

A big mistake made by credit card users around the world, is missing monthly payments. If you do this on a regular basis then you need to stop this habit right away.

Not only are you subject to late fees and charges, which plunges you deeper into financial turmoil, but making late payments also has a negative effect on your credit report.

Always make sure you have enough money in the bank to make your monthly payment, and make sure you do it on time.

Kevin Fountain is an expert on the subjects of credit cards, loans and investment banking. You can find more of his work at

Credit Cards – 3 Ways to Use Them Smartly