This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
What To Do and What NOT to Do
Maximize credit card rewards – There are countless credit card rewards available. You might have to call your credit card company, view the website, or physical collateral to review all of the perks your credit card offers. But I guarantee there is probably at least one or more perks your credit card has that you were completely unaware of.
Set up automatic payments – Never miss a payment. Credit card payments account for the most significant chunk of your credit score. If you miss a payment, it will go on your record (it usually takes about 30 days of being late for this to happen). I would never risk this. Avoid late fees at all costs. By paying your credit cards on time, you will avoid a lot of unnecessary dings to your credit score.
Avoid too many credit cards – It becomes harder to keep track of all the different billing cycles, fees, and payments when you have too many credit cards.
Stick to yourself – Allowing others to get on your credit card (if you have good or excellent credit) can be generous, but not if they abuse your credit card. Do not allow others to be authorized users on your credit card unless you have 500% trust in them. You can also put someone as an authorized user but not give them a physical card, preventing any “accidents” from happening.
Don’t max the card out – The golden rule is only to utilize 30% of your total credit card limit. 10% is better. The less you use, the less you’ll have to pay before the billing statement cycle ends. It can be easy to spend more than you have in your bank account when using a credit card, which is why credit card companies always send people credit cards. These companies know you will likely spend more than you pay back, which means you will pay interest.
Maximize the free loan – As number one recommends, be sure to maximize the free loan, and how do you do this? Never carry a balance. If you never carry a balance, you’re receiving a 30-day interest-free loan.
Avoid them – If you habitually struggle to manage credit cards, max out your credit cards, and miss credit card payments, credit cards are not for you. And this is okay! Avoid credit cards until you’re ready for the responsibility so you can spare your credit.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.