4 rules credit card users should know

Consumers who use their credit cards wisely can build up their credit score and establish a credit history without getting into more debt than they can safely manage. However, new credit card users often tend to buy much more on credit than they should and then fail to properly deal with this debt. By following these credit card rules, consumers will be able to keep their credit card spending in check while still getting the most out of this type of credit.

1. Don’t charge too much. Some consumers chalk up a large amount of debt as soon as they get a credit card because they can. This can quickly max out the card and leave them with a large amount of debt to pay, plus it leaves them without the safety net a credit card can offer.

2: Pay off the balance every month. While some believe carrying a balance is the only way to build up credit, it actually isn't. Paying off the entire card balance every month saves consumers a large amount of money in interest payments.

3. Always pay the bill on time. In addition to late fees, many credit card companies will increase a consumer's interest rate if they make repeated late payments.

4. Pay more than the minimum. Those who can't pay off the entire balance at once should still try to pay more than the minimum monthly payment. Doing so will apply more of their payment to the principal and pay off the balance sooner.

If you want more credit, check out MoneyTips’ list of credit card offers.

This article was provided by our partners at moneytips.com

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