How to use credit cards wisely? - Other Questions


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Questions » User Questions » Other » How to use credit cards wisely?

How to use credit cards wisely?

Answered on

Credit cards have become an integral part of our lifestyle. Right from the time a person reaches the legal age to obtain credit cards; they want to have one in their wallet. While these plastic cards do give you a feeling of financial independence and happiness, this can be short lived if you do not use them wisely. You might end up regretting your choice to sign up for these cards and might have to spend years repaying your dues if you use credit cards recklessly. If you are unsure about when to use these cards and when to avoid them, here are a few points that can come in handy.

First of all, it is important to understand that having a credit card does not entitle you to shop without any thought or reason. Avoid using these cards to shop for groceries, clothes and items that are not essential for your existence. Many people use these cards to pay off their utility bills. While this indeed simplifies the process of paying the bills, you have to make sure you repay the money spent so you have enough to pay your bills the following month without accumulating excessive amount of dues on your card.

It is important not to use the credit card to purchase items that are not an immediate necessity. If there are things that you need for your home such as furnishing items, new crockery or more, it is recommended that you wait until you have enough money to purchase them instead of using your card to purchase them just because they look good or the offer seems irresistible. Do not use credit cards for purchasing expensive gifts for your family or loved ones. In case you do, ensure you make your monthly payments on time so they do not turn into insurmountable dues.

If you do not want to end with a blemish on your credit report, it is recommended that you do not spend over 30 percent of the total credit limit offered on your card. The minute you exceed 30 percent of the limit, the transactions are reported to the credit bureaus. Not making your repayments on time and defaulting on your payments can result in hampering your financial record and therefore, your credit scores which can be tough to repair. In order to prevent all these problems, it is recommended that you use the credit cards wisely.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants,, or wholesale clubs up to the quarterly maximum each time you activate.
Excellent, Good Credit
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
Excellent, Good Credit
0% Intro APR on Balance Transfers and Purchases for 18 months. After that, the variable APR will be 15.49% - 25.49% based on your creditworthiness*
Excellent, Good Credit

Other Questions in

You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!