How to Responsibly Use Credit Cards [Infographic]

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Having a credit card can present significant advantages to the cardholder, including having an excellent credit score to show records of responsible payments, and letting you improve your overall financial health. One other attractive benefit with a credit card is being able to use both the stored credit and loans to pay for your expenses whenever you need to, especially emergencies.

The convenience offered by credit cards can harm the cardholder, though when used excessively and unwisely, but there are some ways for people to use such cards wisely in their everyday lives.

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Look for low-fee, low-interest credit cards

Before going on to how one should use a credit card wisely, one will first have to go with how one can choose a card carefully. One would have to get a card with a low annual fee, and low-interest rate and one can be assured of such by reading the cardholder’s agreement. It’s better to read the agreement than go blind and simply accept the conditions without knowing the fees and finance charges.

Should a cardholder have questions regarding the details of the card, then it’s wise to call your card provider’s customer service to get them answered.

Be sure you can afford to get a card

A credit card may seem like a must-have for many people thanks to the convenience it can give, but one might find it wasteful if the cardholder couldn’t really afford it. Potential cardholders should follow their budgets when either deciding to get a credit card or choosing which one to get.

Stay within your limit
As much as possible, maintain a balance below 70% of your credit limit to keep yourself from going over your limit. Overlimit fees tend to damage one’s credit rating, reducing the advantages one should have supposedly received by using a credit card.

Cardholders must not max their credit cards out.

Pay off as much as you can, even your entire balance for the month

Having low finance charges may seem convenient, but this shouldn’t keep the cardholder from paying for the whole balance each month. Paying as much as the individual can would eventually reduce the finance charges one would have to pay.

Avoid Debt

Because credit cards let cardholders spend money that they still don’t have, it’s easy to go in debt. Being able to borrow money may sound enticing, but going into debt can become a big regret.

One should strive to avoid debt as much as possible to keep from incurring large amounts of debt in the long-run.

Focus on Making On-Time Payments

It is critical that cardholders pay their credit card bills on time not only because it would result in having a positive credit score, but also to keep you from having to pay late fees.

Avoid cash advances

Some credit card providers offer the option to let cardholders get a cash advance. One would have to avoid such offers since they have fees and interest rates that can hurt the cardholder financially. One should avoid cash advances.

Get debt help early

Should a cardholder get into debt, then it’s best to get help early on. Asking a credit counselor is wise to help the cardholder get out of debt.


Having a credit card lets people enjoy the convenience provided by their plastic cards as they can pay even with the money they still don’t have. One can be at risk of having debts or incurring hefty fees when used carelessly, which makes it necessary to know how one should use their credit cards.

One important note to remember is that using the card’s credit is different from taking a loan and using the card doesn’t necessarily mean that the cardholder would go into debt. Wisdom is necessary to keep anyone from going into debt, credit card, or otherwise.

If you need more information on credit cards, visit our website at or contact us at 875 6677.



Author: erwin reyes

Erwin has a combined experience of more than 15 years in the car insurance industry in the Philippines and Australia. Loves cars and enjoys to sourcing out great deals for its clients