How To Use Your Credit Card

Use your credit card statement as a monthly financial health check.

How to use your credit card. Pay as much of your credit card balance as you can afford each month. Use your credit card as a compliment to your budget. If you go into a store for instance you may be prompted to insert your card in a chip reader or swipe it at the checkout. Monitor your activity. When you shift your spending to a different card try to keep your dormant account open until the annual fee if any is due.

Build your credit score. Most credit cards allow you to view your account activity online. If you re disciplined enough you can use a credit card as a compliment to your budget. Other options could include debit card paypal and bank transfers. You will be prompted to choose how you want to pay.

If you find that you need to use your credit card to make a single large expense that will put you over your credit limit contact your card issuer regarding your overdraft options. If your credit card gives you this ability sign up so you can monitor your credit card balance and pay your bill online. Late payments which appear on your credit reports are a red flag to lenders. If your credit card issuer fails to meet your needs for any reason don t hesitate to end the relationship and move on. This strategy usually involves creating a written budget then using your credit card for purchases until you work through your predetermined spending limits.

If you re in good standing and have a history of responsible use some credit card companies will agree to pay for a purchase that technically causes you to overdraft spend more money than you are allowed. It will maximize the average length of your credit history. Pay your credit card balance on time. You may also be able to download a mobile app that allows you to quickly check your balance on your phone. But these kinds of financial health benefits only work if you prudently manage your credit use.

And paying late means you ll also owe late fees and interest. To ensure you pay your credit card bill on time set up notifications from within your credit card s online account. Credit cards are easy to use. You can also add your card to digital. Here are some basic guidelines on how to do that.