Closing - Keep Learning and Keep Earning

Lesson #5.2 The 10 Commandments of Good Credit Card Usage (0:50 mins)

If you’re like most people, you probably have a love-hate relationship with your credit cards.

On the one hand, they offer a great way to earn rewards and they can come in handy in a pinch.

On the other hand, it’s all too easy to rack up a huge balance if you’re not careful.

Here are the ten commandments of good credit card usage:

  1. Thou shalt pay thy balance in full each month.
    This is the number one rule for good credit card usage. By paying off your balance in full each month, you’ll avoid interest charges and keep your debt under control.

    And if you can’t pay it off in full each month – because life happens – then PAY AT LEAST the minimum payment

  2. Thou shalt not use thy credit card for cash advances.
    Cash advances are a quick way to rack up debt, and they often come with high fees. Avoid them if at all possible.

  3. Thou shalt not use thy credit card for unnecessary purchases.
    It’s important to be mindful of your spending and only use your credit card for items that you truly need.

  4. Thou shalt monitor thy credit report regularly.
    Checking your credit report on a regular basis is a good way to catch errors and identify potential fraud.

  5. Thou shalt make thy payments on time.

  6. Thou shalt never use thy credit card to gamble or make risky investments.

  7. Thou shalt never give thy credit card number to anyone who thee does not trust implicitly.

  8. Thou shalt use thy credit card for emergencies only or for big/planned purchases.

  9. Thou shalt read thy credit card statement carefully and understand thy charges.

  10. Thou shalt always remember that using a credit card is a privilege, not a right, and that misuse can lead to financial hardship.