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We have all been advised not to mess with Credit Cards while growing up and if we have to, it should only be for contingency use. The stigma against credit cards is real and it hinders a lot of people from being able to succeed in using credit cards the correct way. Well, the purpose of this article is to hopefully help you uncover some tips that I have learned using various types of credit cards.

Spend what you can manage

This is a no-brainer so I will have to make it obvious! When a credit card is used correctly, it will help you manage your money better while helping you save money in cashback form. The misconception of only using your card for emergencies can hinder you since an emergency expense can be something that will take a little longer to pay off. This is where you gotta be cautious with the interest trap. So long as you can cover the balance on your statement each month, you will never accrue any interest on your credit card purchases and that feels so so good. Yes, it feels amazing!

Consider No Annual Fee & Cash Back Options: Here’s why

When I first looked into my first credit card, it was intimidating but all you want to pay attention to is if the card has NO ANNUAL FEE, and CASH BACK REWARDS. Sign up bonus is a huge plus too. If you have to pay an annual fee for your credit card, you should be taking advantage of the rewards to be able to make that annual fee worth it. I recommend getting a card with no annual fee so that you have no worries at all.

Focus on your transactions 

Every day we make purchases that we need to make like gas, bills, groceries, food, etc. Instead of using your debit card, you can use your credit card and benefit from the sweet CASH BACK! Think of it as a virtual piggy bank every time you purchase with your card. At the end of the month, you get to collect the rewards and use your cashback to pay off part of your statement or deposit it into your account to use as cash. Either way, it’s money that goes back to you for whatever you may like. Pretty sweet right?

Depending on the kind of credit card, you can get anywhere between 1%-5%. Usually, the best cashback cards have no annual fee and will sometimes offer a bonus for spending over a certain amount in a few months. This comes easy for me when I use the card for bills, groceries, etc.

Take control of your credit score

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The significant advantage of taking control of your credit card use is that it helps with improving your credit score. This score has a huge impact on receiving loans, getting approved for mortgages, and acquiring low-interest rates for situations like getting a car loan. With the frequent use of your credit card, your credit score will be able to rise much quicker than never having and using one. Do more research on your own as well on ways to improve your credit score to find out other ways to take advantage of this knowledge.

Ever since I started making these aims for myself to manage my finances, I have felt much more in control of my money and less accentuated. Again, I recommend doing some research, and Nerd Wallet is a great place to start. Hope this article was beneficial to you! Any share, like and tip to support is gladly appreciated.