What is the most efficient way to use a credit card?

Pay off your balance every month. Avoid paying interest on your credit card purchases by paying the full balance each billing cycle. Resist the temptation to spend more than you can pay for any given month, and you'll enjoy the benefits of using a credit card without interest charges.



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  • Pay on time. Paying your credit card account on time helps you avoid late fees as well as penalty interest rates applied to your account, and helps you maintain a good credit record. ...
  • Stay below your credit limit. ...
  • Avoid unnecessary fees. ...
  • Pay more than the minimum payment. ...
  • Watch for changes in the terms of your account.


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Rule #1: Always pay your bill on time (and in full) The most important principle for using credit cards is to always pay your bill on time and in full. Following this simple rule can help you avoid interest charges, late fees and poor credit scores.

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Purchases you should avoid putting on your credit card
  • Mortgage or rent. ...
  • Household Bills/household Items. ...
  • Small indulgences or vacation. ...
  • Down payment, cash advances or balance transfers. ...
  • Medical bills. ...
  • Wedding. ...
  • Taxes. ...
  • Student Loans or tuition.


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8 Common Credit Mistakes and How to Avoid Them
  • Ignoring Your Credit. ...
  • Not Paying Bills on Time. ...
  • Only Making Minimum Payments. ...
  • Applying for Multiple Credit Cards at Once. ...
  • Taking on Unnecessary Credit. ...
  • Closing Credit Card Accounts. ...
  • Opting for Longer Auto Loan Terms. ...
  • Becoming Complacent.


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  • Getting into credit card debt. If you have the wrong attitude about credit cards, it could be easy to borrow more than you can afford to pay back. ...
  • Missing your credit card payments. ...
  • Carrying a balance and incurring heavy interest charges. ...
  • Applying for too many new credit cards at once. ...
  • Using too much of your credit limit.


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