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How to Use a Credit Card Wisely

Credit cards are a great financial tool and easy to use, as long as you use them in an intelligent way. They are great for building credit and improving your credit score, and many even offer additional rewards. It’s important to understand the ins and outs of using a credit card, such as grace periods and interest rates, so you’re able to find the perfect fit. With that, here are four valuable tips on how to use a credit card wisely.

Never Spend More Than What You Can Afford

This one seems self-explanatory, but many people fall into the trap of overspending on a credit card, either because they have a larger limit, or because it becomes tempting to spend money being loaned to them. If your credit card spending gets out of control, payments and accrued interest can become an issue. A good rule of thumb is to spend 30% or less than your total credit limit. This also means the total credit limit you have across multiple credit cards if you have them.

Use Your Card For Necessary Purchases

Using a credit card for entertainment and “wants” spending is an easy way to lead to debt. A credit card should be viewed as a necessary loan to yourself that you can pay back immediately — regular expenses like rent, utilities, car payments, etc. can be a great use of a credit card and will help build your credit score. While entertainment expenses here or there won’t cause a problem, be careful not to overuse your card for those types of purchases.

Pay it Off Every Month

As long as you have the right amount of funds in your bank account, you can easily link your credit card to be automatically paid every month. Even if you don’t choose to use automatic payments, paying off at least the minimum card balance every month will help you avoid interest charges and negatively impact your credit score. It will also help you avoid any late fees that might be incurred.

Find a Card with Benefits

There are many ways how to use a credit card wisely and they also offer additional rewards for making your payments, such as cash back on purchases, earning airline miles, or incurring points for retail, hotels, and more. For example, the Republic Bank Visa® Platinum Cash Rewards card offers unlimited 1% cash back on every single person. Another great benefit of a card is low to $0 annual fees. All Republic Bank credit cards feature these free services:

  • EMV chips for extra security
  • Digital access with Apply Pay™, Google Pay™, and Samsung Pay
  • Emergency card replacement
  • Zero liability fraud support
  • Travel and emergency assistance
  • Purchase security and extended protection
  • Fraud alerts

Plus, so much more! At Republic Bank, we’re committed to providing you with the best banking experience with the least amount of stress. If you’d like to learn more about our new Platinum credit cards, visit our website or give us a call at 800-526-9127.

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