Article

Using credit cards wisely

Credit cards can help you build your credit history if you use them responsibly

Credit cards are useful, but as with any time you borrow money, it’s important to take steps to protect your credit score and financial health when using them.

Key Takeaways:

  • Credit cards are convenient and can help you build good credit if you use them responsibly.
  • Make sure you understand your card’s key terms, including its interest rate, fees and policies.
  • Credit card rewards programs may offer cash back, points or miles. Some cards also offer perks, such as concierge service or travel insurance.
  • If you can’t pay off your credit card balance in full each month, try to at least make the minimum payment.
  • Keeping your balance below 30%* of your credit limit and avoiding applying for new cards unnecessarily could help your credit score.

* “What is a Credit Utilization Rate?,“ Experian Information Solutions, Inc. www.experian.com/blogs/ask-experian/credit-education/score-basics/credit-utilization-rate/.

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