Most people love using credit cards over debit cards. Credit cards provide us the financial freedom to purchase anything we like without paying instantly. Hence, credit cards have been crowned as one of the best financial options. Apart from that, unlike debit cards, credit cards have a reward program. The reward program of the credit card not only gives you tons of attractive rewards but also saves you money. Not to mention, a credit card will upgrade your lifestyle.

However, despite various advantages, the credit limit can be extremely seductive. If you don’t take precautions while purchasing through your credit cards, you might find yourself in a financial crisis or certain debt. Therefore, it’s very important to understand the do’s and don’ts while using a credit card. 

In this article, we will discuss the top 4 tips that will help you to use your credit cards smartly. This way you can enjoy your life without worrying about debts.

Make Sure the Utilization is Low

You should always maintain the balance of your credit card less than 50% of the total credit limit. If you carry high balances on all of your credit cards, it will damage your credit score. Additionally, if the high balances are carried over from one month to another, the interest will also increase. Hence, make sure the credit utilization ratio is low on your credit card account to rebuild your credit score. 

Don’t Forget to Pay the Bills on Time

Many people ignore or forget to pay their credit card bills on time. This is one of the crucial mistakes you need to avoid if you want to maintain a healthy credit score. If you happen to have an outstanding balance, credit cards will charge you high-interest rates. Additionally, when you don’t pay off the interests, the amount piles up and ultimately becomes massive. Apart from affecting your credit score, you also might have to face a penalty for missed payments. 

Hence, if you don’t want to pay high interest and thousands of dollars, pay your credit card bills on time. Set a reminder so that you won’t forget about the bill payment date

Don’t Withdraw Money Using Credit Card

This is the primary difference between debit cards and credit cards. If you have debit cards, you can easily withdraw money without any hesitation. However, things get a little tricky for credit cards. As per CNBC, if you withdraw money from an ATM using your credit card, you’ll have to pay heavy charges as soon as you complete the transaction. Hence, it’s suggested to not treat your credit card as a bank account. 

Carefully Read the Promotional Offers

Before you accept the promotional offers, you should always read them carefully. Some credit card companies lure thousands of customers through promotional offers. These offers might seem initially beneficial, but you need to read the terms and conditions first. This way you can avoid purchasing something you don’t need. Remember that just because something is running on offer doesn’t mean that you need to purchase that product. 


These are the 4 tips you need to remember if you want to use your credit cards smartly. The benefits of a credit card are amazing, but you need to have discipline and willpower to take advantage of it. Do you have any questions? Feel free to comment below.

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