Responsible users use credit cards to pay bills and buy things they already use such as gas and groceries, and
then pay the bill in full every month.
Not exact matches
To do so, try to keep your revolving balance (your unpaid amount at the end of each
billing cycle) under 30 percent of your overall credit limit, and
then pay your
bill in full and on time each
month.
If the 21 -
month of no interest on balance transfers isn't significant, or if you'll
pay your
bill in full after 18
months,
then we'd suggest the Citi Double Cash or other cards as better investments.
If you are someone who is diligent about always
paying off their credit card
bill in full each
month,
then we recommend going with a card like this, over the Citi Diamond Preferred ®.
Using a cashback card to
pay for work expenses, which you
then reclaim from your employer, can be a powerful way to earn more at no cost to you, provided you can cope with
paying the
bill in full each
month.
Credit companies
then watch your activity over a set period — six
months, a year or two years — to see if you are using the card responsibly (you know:
paying your
bill on time or
in full) or according to a metric called utilization.
If you don't
pay your credit card
bill in full each
month,
then you're probably
paying for your revolving credit with a variable interest rate.
If you will
pay your
bill in full each
month,
then you can focus on a card that offers other perks.
Start with one card, a secured card if necessary,
then add a second card when you can prove to yourself that you are making your payments on time and
paying your
bill off
in full each
month, says Netiva Heard, a credit counselor
in Chicago.
However, if you don't
pay the
bill in full each
month,
then getting a high - interest card with better rewards isn't a good idea.