Keep your credit utilization ratio (the percentage of credit used out of your total credit limit) below 30% to maintain a healthy credit score.
Always aim to pay off your credit card balance in full each month to avoid interest charges and debt accumulation.
Missing payment deadlines can lead to late fees and damage your credit score. Set up automatic payments or reminders to avoid this.
Maxing out your credit card not only hurts your credit score but also leaves little room for emergency spending if needed.
Be aware of your card’s Annual Percentage Rate (APR), especially if you plan on carrying a balance, as high-interest rates can quickly escalate debt.
Look out for fees like annual fees, foreign transaction fees, and cash advance fees. Avoid unnecessary costs by understanding your card’s fee structure.
Regularly review your statements for any unauthorized transactions or errors. Report discrepancies to your credit card issuer immediately.
Each credit card application triggers a hard inquiry, which can temporarily lower your credit score. Apply for new cards only when necessary.