Credit cards can be a great tool if you know how to use them. With a credit card you’re able to:

• Build the credit score that you will need to buy a car, house, take out a student loan, etc.
• Get Cash Back or purchase protection and fraud protection—it’s good to know that rewards such as cash back likely aren’t taxable.
• Have funds available for emergencies.

That’s more than you can do with cash.

Definitely get a credit card that offers cash back rewards and other benefits, if you’re going to get a card. When you calculate the percentage you get back from using your credit card, you get more

bang for your bux

with cash-back cards than other types of rewards. In other words, you end up with more money in your pocket than you would have with miles, points, etc.

Check your personal recommendations from friends and family to find a card suitable for you.

If you do have a card, but don’t trust yourself with it, cut it up! And pay off the balance as soon as possible. A few tips:

1. Don’t use plastic without completely paying off the balance each month.

2. Worst case scenario: pay $1 more than the minimum required. Paying the minimum sets off a red flag for credit card companies—potentially damaging your credit—and you avoid this by simply paying slightly more than the minimum.

Rates & Fees: Ask and You May Receive

So if you usually pay your credit card bill on time but accidentally make a payment late. Ask the company to waive your late fees. If you have a high interest rate, ask the company if you can have the rate reduced. Credit card companies will often agree to these requests, especially for a reliable card user.

Creative Charging

If you’re in school and have money to pay it off, put a portion of your tuition payment on your credit card. This will both improve your credit score and give you cash back (that is, if you took our tips on the cash-back credit card). You wouldn’t believe how much money you could have back at the end of the year. And you’ll be building better credit so you’ll have better
rates next time.

Do make your big purchases on a quality card for purchase protection and other benefits.

Don’t use your card where you’re likely to overspend—like at the bar throwing money around.

Hope you enjoyed a few of our credit card tips.