What are 4 important rules about using a credit card?

Using the simple rules below, learn to use your credit cards responsibly.

• Pay your credit card bill on time.
• Pay your credit card bill in full.
• Keep your credit utilization ratio low.
• Only charge what you can afford.
• Read your statement each month.
• Choose cards that suit your needs.
• Avoid cards with annual fees, in most cases.

Do you have to spend money on a credit card every month?

Credit cards are great tools for building your credit history, and you don’t need to carry an unpaid balance to do so. Your best strategy is to use your credit cards and pay off the bill in full each month, so you keep your overall debt-to-credit limit ratio low.

Is there a limit to credit card spending?

Your credit card spending limit is a powerful number. Your spending limit determines how high a balance you can carry on your credit card at any given time without receiving a penalty. If you have excellent credit and a history of paying off credit cards, your spending limit could be over $11,000!

What happens if I don’t spend any money on my credit card?

1. Your card could be canceled. Credit card companies make money from credit cards in a number of ways, including annual fees, interest fees, and late fees. So, the most common outcome of letting your card go unused is that the card issuer simply cancels your unused credit card and closes the account.

What is my spending limit?

Your Spending Limit is the monthly maximum amount of spending per phone on your account based on your credit decision. For accounts with multiple phones, the total spending limit is calculated as the number of phones on the account multiplied by the spending limit per phone.

What is the best number of credit cards to have?

Because of possibilities like these, it’s a good idea to have at least two or three credit cards. If you only want to have a single credit card, make sure that you’re always prepared with a backup payment method, whether cash or a debit card.