How to Use a Credit Card Responsibly

collecting coins

Responsible credit card use is easier than you think. You just have to start being responsible from the get-go. For example, you need to pick a credit card that has a low if not the lowest interest rate. And that depends on where you live.

How to Never Bite the Credit Bullet

Credit card companies are always running all sorts of promos and special offers depending on how hungry they are for new customers. Accordingly, they will offer you all the bells and whistles to get your credit card use going. Is it your first time? If so, it’s the best time to cultivate responsible credit card use.

To illustrate, don’t get so enamored with no annual fees that finance companies dangle like a carrot on a stick these days. No annual fees will not get you anywhere in the budgeting game. If you’re still in doubt about it, just try dividing an annual fee by 12 months. It’s really nothing, right? So, you can probably afford it.

What matters the most in the credit card game is how much the interest rate is, and that’s why you need to stay focused. Just remember, the interest will figure in every purchase that you make when you’re unable to pay the full monthly bill or the total price tag of what you owe the banks. That’s why you need to keep your eye on the prize.

Reward points, signing bonuses, no fees, and other special offers are mere icing on the cake. If you’ve managed to get yourself in the interest rate trap, you need to shop further for a card that offers the lowest rates–the lower, the better. Sometimes, when you’ve just started building credit, it can take some time to find your dream card.

The Interest Rate is Everything

But no worries, you can get there by assessing each and every card in the market until you finally find what you want. Just keep aiming for the lowest interest rate that is available to you at each time. Of course, you’ll be reviewing a lot of cards in the process, but rest assured, it’s well worth it. Just stay focused.

Along with the low-interest rate strategy, be sure that you’re always paying the maximum if not the total monthly bill from your credit card provider. But don’t feel bad if some months you don’t. The fact is, there will always be an exception or exceptions to the rule.

Staying invested in responsible credit card usage means never having to say you’re sorry or feel sorry for yourself when you can’t pay the full amount staring you in the face. Just try your best to pay what you can. Even if you’re budgeting hard, the cost of living is just too high these days that you can’t always get what you want.

Just Keep Going and One Day You’ll Hit It

So, the key is to keep trying until you get to the exact point where you want to be. Staying invested in financial responsibility means that you don’t give up easily or get frustrated with a major debacle, like being broke for a given month. Remember, the law of averages is on your side. If you manage to still make the cut for most of the months, you should be good to go. Give yourself a pat on the back for staying in the game. You can do it.

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