Life Kit: Money

Avoid debt with these credit card tips

9 snips
May 29, 2025
Delve into the intricacies of credit cards and discover how they can impact your financial health. Learn the importance of timely payments for boosting your credit score and explore the potential pitfalls like high APRs and hidden fees. Get practical tips on managing credit card features, distinguishing between balances, and strategizing to avoid debt. Finally, uncover ways to maximize card benefits tailored to your spending habits for a smarter financial future.
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INSIGHT

How Credit Cards Make Money

  • Credit card issuers make money mainly from merchant fees and interest or late fees when you carry a balance.
  • You can be an exception and use credit cards to benefit yourself, not the issuer.
ADVICE

Use Credit Cards to Build Credit

  • Use at least one credit card to build positive information for your credit score.
  • Use it occasionally and pay bills on time to maintain and improve your score.
ADVICE

Know Your Card Terms

  • Understand your credit card's APR and fees, including penalties and variable rates.
  • Remember interest compounds daily and late fees plus interest can quickly increase your balance.
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