In addition to deciding a credit card is the right financial tool for you and successfully applying for one, it is also important to understand how to use it wisely. Misuse of a credit card can impact your credit score negatively and could have long-term consequences for employment, housing options, or other loans you apply for. Whether it is your first card or one you've had for a while, this list gives 13 tips to use it wisely and build great credit card habits for life.
WiseDollar offers these three tips as advice for How to Use a Credit Card Wisely.
The folks at WiseDollar suggest every family should have at least one credit card in the household for emergencies. Some consultants recommend never using credit cards. But, you can strike a happy medium if you use one in an appopriate manner. You can avoid additional fees, while being prepared for emergencies and expenses you cannot afford up front. This video on Wise Use of Credit Cards and the Dos and Don'ts of Using Credit Cards Wisely are both additional resources to help you learn the best ways to access your credit limit and make timely payments. Following the recommendations will improve your credit score and make you a wiser consumer.
If you have a financial relationship with a credit union, they are also a good partner for a credit card. In addition, many also have financial counselors and are happy to assist you with learning to use your card in a prudent manner.
Montana Credit Unions for Community Development (or MCUCD) is the award-winning, charitable arm of the Montana Credit Union Network. A state-wide nonprofit organization, MCUCD works together with the state's credit unions to improve the lives and financial independence of all Montanans.