How to Use Your Credit Cards Responsibly

How to Use Your Credit Cards Responsibly

Spending money on a Charity Charge credit card is a great way to earn cash back for your favorite nonprofits. But there’s a right way and a wrong way to treat your cards.

If you manage your credit irresponsibly by missing payments and accruing a balance, your credit score can take a hit, and you’ll pay loads in interest expense. Follow these rules to manage your credit in a way that builds your finances rather than destroys them.

Treat your credit cards like cash.

Treat your credit cards like cash

It is so easy to overspend on a credit card because a simple swipe removes the emotional tug of cash leaving your pocket. If you treat your cards like cash, you’ll be less prone to overspending and less likely to end up with a month-end balance you can’t pay in full.


Pay off your credit card every month.

Pay off your credit card every month

Interest rates on credit cards are extremely high and can sabotage your finances quickly. The longer your balance is outstanding, the more your interest expense snowballs into an amount you can’t afford. But if you pay your full balance each month, then you’ll never have to pay interest. So set your account to auto-pay the full balance (not the minimum balance!) every month.


Don’t apply for every credit card.

Don’t apply for every credit card

Don’t be seduced by the aggressive promotions every credit card issuer runs! Each time you apply for a credit card or personal loan, the inquiry slightly dings your credit score. Instead of signing up for every credit card offer, think about your purchasing behavior and travel loyalties and only apply for a new card if it adds value to your life.



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