{"id":49549,"date":"2021-09-20T16:44:00","date_gmt":"2021-09-20T20:44:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=49549"},"modified":"2021-09-23T13:06:05","modified_gmt":"2021-09-23T17:06:05","slug":"how-to-use-a-credit-card-responsibly","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/how-to-use-a-credit-card-responsibly\/","title":{"rendered":"How to Use a Credit Card Responsibly: 6 Tips"},"content":{"rendered":"\n

Do you avoid using your credit card out of fear of overspending? What are some things you can do to minimize credit card liability?<\/p>\n\n\n\n

Once you have a credit card you\u2019re happy with, you need to learn how to use it responsibly. Otherwise, it\u2019s all too easy to forfeit the benefits and wind up saddled with debts and fees. <\/p>\n\n\n\n

Here are six tips on how to use a credit card responsibly. <\/p>\n\n\n\n\n\n\n\n

Credit Card Tips<\/h2>\n\n\n\n

Credit cards have somewhat a bad rap: many personal finance gurus urge people (especially young people who don’t have financial stability) to stay away from them. But credit cards aren\u2019t inherently bad\u2014if you use them mindfully, they\u2019re a great way to proactively improve your credit and get access to useful perks. Below are some tips on how to use a credit card responsibly.<\/p>\n\n\n\n

1) Pay your bills on time, preferably in full.<\/strong> Even just one late payment can lower your credit score, raise your APR, and stick you with a late fee (usually about $35). You can bounce back from the occasional hit to your credit, but it\u2019s best to avoid the issue in the first place by setting up automatic payments. If you do <\/em>miss a payment, call the credit card company and tell them it was a one-time mistake and you\u2019d like to have the late fee removed (make sure you\u2019re telling<\/em> them you\u2019d like the fee removed, not asking <\/em>if they can or will remove it). This works more than half the time. <\/p>\n\n\n\n

2) If you\u2019re paying any fees, try to get them waived.<\/strong> Start by calling your credit card company and asking a representative whether you\u2019re paying any annual fees or service charges on your card. If you are, tell them you\u2019d like a no-fee account and ask them to waive any current fees. This works more often than you might expect, but if not, ask if they have a no-fee card that you can switch to. Credit card companies don\u2019t want to lose your business, so they\u2019ll work with you to find a solution.<\/p>\n\n\n\n

3) Lower your APR. <\/strong>Again, this involves calling your credit card company. If you\u2019re nervous about the idea of negotiating, keep in mind that credit card APRs are usually between 13-16% and can be much higher. Ideally, you\u2019re paying off your balance in full every month, but if you\u2019re not able to do that yet, your APR determines how much more you\u2019ll end up paying in total. <\/p>\n\n\n\n