10 Must-Follow Credit Cards Rules

Do you find yourself facing credit card problems every month? You are not alone. The typical American struggles with proper credit card management and carries around $6,000 in balance on average. Separate from the pack and get your act together today. Follow the rules below and make your credit card work for you like a pro.

1. Have only two cards max.

Most people have four credit cards and this is where the problem starts. You need no more than two to build your credit. It is not about how much plastic you have but about how you borrow and pay back the money, whether it’s a mortgage, car loan, student loan, even your utility bills.

2. Drop your store cards.

The revolving interest rate is usually highest on department store cards. Also, limiting where you can use a particular card has downsides. Better to use a general rewards card when shopping and getting your everyday purchases.

3. Do not carry a high balance.

Make 30% your maximum to keep your credit score healthy. It does not matter whether you pay your monthly bills on time. Anything above 30% will hurt you.

4. Avoid taking cash advances.

There is no winning with cash advances. The interest rate is so bad, and you are likely to be stuck paying that for a while, which makes everything worst.

5. Pay your balance every two weeks.

Use credit card apps to check your statement and pay it every two weeks instead of every month. Doing this ensures you are not carrying any balance to a new month and you never face such a large number at the end of the month. Practice this and your financial life will improve dramatically.

6. Get a credit card that matches your lifestyle.

Do you travel a lot? Get a travel card that earns you points and cashback each time you fly. Do you drive a lot? Find a gas card. Align your card with your lifestyle so you are always getting cashback and rewards.

7. Find a cashback card.

You are already paying for everything, might as well get something in return!

8. Do not be ashamed of your financial mistakes.

Learn from your money mistakes instead of beating yourself up about them. There is a lot of fear, shame, and guilt around money but do not let these negative feelings stop you from seeing solutions. Focus on what you can do to improve instead.

9. Use your credit card for big purchases.

Even if you can pay it in cash, but the big purchase on your credit card and pay it off in full. You earn the rewards this way, plus improve your score by showing you are a good borrower.

10. Pay your debt first.

Above all, tackle your debt problem first. Even if you want to buy a house or save for your retirement, none of these will work if you are carrying a huge amount of debt. The money that you could be saving is only going on your credit card interest. Solve that debt first then proceed to achieve your other financial goals.