How Do I Use Credit Cards Responsibly?

Like most financial products, the advantages of credit cards are best enjoyed when cards are used responsibly. It is essential for anyone who decides to open a line of credit to consider how they plan to make the payments and how to use their newfound purchasing power responsibly.

It can be beneficial to use a credit card for purchases that allow for the balance to be paid off within a reasonable time frame. If there is no plan to pay off the balance, however, it will likely continue to accumulate interest, reduce spending power and potentially limit the benefits of having a credit card. You may be able to calculate the interest and payoff time of any credit card with online tools, like the Credit Card Interest Calculator from Mettle. A good rule of thumb for using credit cards responsibly is not to use them for impulse purchases or unaffordable items if you cannot pay it off within a reasonable amount of time.