DIY Money | Personal Finance, Budgeting, Debt, Savings, Investing Managing Credit Cards and Building Credit
Oct 16, 2023
Exploring how to manage credit cards effectively for building credit, including using specific cards for travel rewards and maintaining good credit habits. Delving into strategies for choosing the right credit card, avoiding pitfalls of store credit cards, and managing credit utilization to make prudent financial decisions.
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Pay Credit Cards Fully Monthly
- Always pay off your credit card fully each month to avoid debt and build good credit.
- Maintain credit utilization below 30% by increasing your credit limit if needed.
Using Credit Cards Without Debt
- Carrying credit card debt is unnecessary when you can use cards for purchases and pay off monthly.
- Rewards points can provide valuable travel benefits when managed responsibly.
Increase Credit Limit for Score
- Increase your credit limit to improve your credit utilization ratio and boost your credit score.
- A wider gap between used credit and available credit positively impacts credit scores.