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.
Don’t do your happy dance JUST yet
Some of you have worked hard to access a high-limit credit card.
No more $500 credit limits that can run out instantly.
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How will you utilize the credit card responsibly?
This is a critical question.
Many people head online or to the store first thing after they score a large credit card balance.
Wait a second. Take a pause.
As your credit card limits increase, so does the temptation to use more of your card balance and make more purchases than you can afford.
If you have a $50,000 credit limit and only have $10,000 in the bank, then you’ll want to use $10,000, so you can pay off your card balance before the next billing cycle.
Hopefully, you don’t want to use the whole $10,000.
Don’t you want to have some money left over in your bank account?
It is recommended to utilize 30% or less of a credit card – preferably 10%.
But the best recommendation is never to carry a balance unless you’re doing so for strategic purposes (i.e., a business loan from yourself, using your credit card as a second emergency fund, etc.)
Carrying a balance on a credit card is one of the worst to leverage your dollars.
Credit card interest is quite expensive, as many of you know.
Interest rates can easily fall into 20%-30%.
Ummmm….no, thank you, credit card companies. I’ll pay my bill before the statement comes knocking at my door.
Once You Master The Plastic, Teach Others
Credit cards have destroyed people’s financial lives. Credit cards could be considered demonic pieces of plastic by how much havoc they wreck in people’s lives.
But once you master the piece of plastic, it’s only smooth sailing.
Thankfully, I never had a problem with credit cards, but I was surrounded by people who did, which is how I learned not to use a credit card (my favorite way to learn is by observing others’ choices).
And they continue to use it responsibly, which I’m very proud of, which is why I will potentially add them to another.
Pass the knowledge down! End destructive habits with credit cards by sharing your knowledge, strategies, and productive financial habits with others – starting with your family.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.