36_3-Healthy-Credit-Card-Habits

3 Healthy Credit Card Habits to Start Today

When it comes to personal health, most people don’t put off trying to get better.  If an issue affecting health comes up, a trip to the doctor or hospital to diagnose and fix the problem is a no-brainer. So, why then do so many ignore the warning signs of financial sickness? And, even worse, they compound the problem by continuing bad practices, including improper credit card use. If your finances are in danger of flat-lining or could use a little wellness, here are 3 healthy credit card habits to start today.

1. Pay Your Balance in Full

Because most credit cards come with high interest rates and hefty fees, it can be catastrophic to miss a payment. And, when those late payments add up over time, your financial health can take a serious hit. By paying your balance in full and on time every month, you can avoid much of the consumer debt that gets so many people in trouble. You might even consider making multiple payments every month. It softens the sting of making one large payment at the end of the month and can help you to avoid missing a deadline. If you can’t afford to pay off your credit card in full every month, pay as much as you can and reevaluate your spending habits.

2. Stay Below Your Credit Limit

Every credit card comes with an available credit limit. How much of that limit you use has a huge impact on your overall credit health. If you do carry a balance on your credit card, make sure to keep that balance at less than 30% of your limit. That’s because your credit report takes into account your used credit to available credit ratio, and when your balances are close to maxed out, it’s a red flag that you’re overextended. If you’re already over the 30% threshold, adjust your budget to pay down your balance ASAP.

3. Use Your Perks

The third healthy credit card habit you should employ right now is to understand and use your credit card perks. Because there are so many offers out there, do some research and find a credit card with rewards that you’ll use. Having one or two credit cards with great perks is a much better practice than trying to chase different rewards by accumulating payments on multiple cards. And, credit card perks extend beyond rewards. Research your credit card for fraud prevention, and possible refund and price adjustment perks, as well.

Being financially healthy has a lot to do with how you use your credit card. So, be smart about your credit card habits and you’ll reap the rewards of financial prosperity for many years to come.

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