Best way to use a credit card?

General Discussion Forum
1

Hi Guys,

I recently got a credit card and am trying to figure out the best way to use it. Should I pay off my purchases in full right away, or is it better to make regular payments? Also, I’ve heard it’s important to keep the balance below 30% of my credit limit—does that really matter?

Thanks for any advice…

2

Hey, Pay It Off in Full (If Possible):

  • Avoid Interest: Paying your balance in full each month prevents interest charges, saving you money over time.
  • Improve Credit Score: Full payments demonstrate responsible credit use and can boost your credit score.

Keep Your Balance Below 30% of Your Credit Limit:

  • Credit Utilization Ratio: This is crucial for your credit score. Staying below 30% shows responsible credit management.
  • Avoid High Utilization: Balances above 30% can harm your credit score.
3

Pay off your balance in full every month. You’ll avoid paying any interest and build your credit. Best advice my parents ever gave me.

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4

I use it for every monthly purchase I make. petrol, groceries, and evening meals with my spouse