Four Strategies To Use Credit Cards Safely

Person entering credit card information online
Via Unsplash
Abeni Jones
November 1, 2020

#1: Choose the right card.

If you’re new to building credit, a “beginner” card with 0% interest, no fees, and a low limit will be a safe bet. If you’re more experienced, a rewards card could be best. No matter what, do your research! There are countless types of cards with different benefits and drawbacks.

#2: Pay off your balance EVERY MONTH!

This is the number one rule of credit card ownership. Do NOT use a credit card to buy things you can’t afford. If you can’t pay off your entire balance every month then you probably should NOT use your card! But how does that work?

#3: Use your card regularly to build credit

The safest way to use a credit card is to make everyday purchases with it, but pay the balance off every month. This is especially true if you have a rewards card. If you carry a balance month-to-month, you will be charged interest. Interest can add up FAST. Avoid it by paying your entire balance off monthly.

#4: Credit cards can be safer

For buying gas or online shopping – which have high rates of fraud – credit cards can be safer than a debit card. If anything happens, you can cancel your card before any real money has actually left your account! And companies will often reimburse you, too.

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