How to use a credit card responsibly

Whether you’re more experienced with credit or looking to build your credit history, a credit card can be beneficial if used responsibly. Many credit cards have reward earning opportunities and more fraud protection than debit cards. If you have a limited credit history and are trying to choose a credit card, a secured credit card can be a practical option. But building credit with a credit card requires consistent healthy credit habits.

Here are some tips for using a credit card wisely:

How to use a credit card to build credit

Mind your credit utilization rate

If you use your credit cards a lot, you should be mindful of your credit utilization rate. It’s one of the biggest factors in your credit score calculations. Basically, credit utilization measures how much credit you’re using compared to your available credit limit.

 

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