5 Handy Tips on How to Use Credit Cards Responsibly


Credit cards are excellent additions to anyone’s wallet, as long as you know how to use them wisely and responsibly. Some people get racked up with bills because of unnecessary purchases made using this plastic material.

But if you take control of your spending habits and make wise decisions, having a credit card can help you earn huge discounts and other benefits.


In this article, you can learn a handful of tips on how you can better manage your credit card use. We hope this advice is helpful to you!

Here are financial tips for using credit cards wisely.

Borrow What You Can Afford to Pay Back

The simple rule in owning a credit card is to only borrow a certain amount that you can payback. In the United States, the average credit card debt of an American household is $7,055 according to Debt.org. This means that most Americans struggle to pay back what they owe, leading to massive penalties in the form of interest.


To prevent debt problems, limit the use of the card for unaffordable lifestyle and impulsive buying.

Pay in Full

Minimum payments will not do you good because, over time, balances can accumulate without you noticing. The reason why there are minimum payments is part of the bank’s marketing to make you feel as if 4% payment of the total amount is a good thing. This is the culprit of gigantic interest that will add up to your balances.

What you need to do is simply pay off your balances in full every month so you can start with a clean slate.

Lower Credit Limit

The bigger your credit limit, the more confident you become when spending. If you’re only issued an $800 credit limit on your card, then you cannot make huge purchases. This means avoiding the money trouble when the bill arrives at your doorstep.

Be aware of unsolicited credit limit increases, too. Some lenders do this because they believe a cardholder can carry a bigger balance and pay more interest.

Pick a Card Suitable to Your Lifestyle

Credit cards are categorized based on their use and benefits. For instance, travel cards let cardholders earn bigger miles points that they can use to get discounts on plane tickets. There are also cashback credit cards, balance transfer cards, and everyday cards.

To maximize the benefits of the card, make sure that you pick a card suitable for your lifestyle. If you’re constantly buying groceries, there are credit cards that offer up to 2% cashback for every transaction.

Make Use of Alerts

Take advantage of the technology when using your credit card. Aside from text alerts, you can also enroll in automatic payment, wherein you will allow the card company to debit your payment from your bank account. This will help you get rid of the balances each month and stay out of interest.

In addition to these, you can also use digital banking applications to review transactions made using your credit card. Reflect on your spending habits and correct these gradually.


There are plenty of benefits to having a credit card. But, it is a matter of discipline in order to prevent accumulating huge balances and penalties. Make sure to follow these tips to be a responsible cardholder.