How to Use a Credit Card Responsibly

Using a credit card responsibly is the best way to avoid debt. Here’s how to make sure you’re using credit wisely.  First, always pay your bill on time to avoid late fees and unnecessary interest charges. If possible, pay your balance in full each month to avoid paying interest on your purchases. Second, keep your credit utilization ratio low—aim to use less than 30% of your available credit limit to avoid harming your credit score. Finally, only use credit for essential purchases, and avoid buying things you can’t afford to pay off immediately.