Responsibly using Credit Cards.

Let me guess. Financial experts and influencers tell you that credit cards are bad and that you should immediately eliminate them.

Yes, we all have read those warnings. Many of us probably wondered if those warnings were true and felt guilty for using our credit cards so often.

Although credit cards can be expensive and lead to many Americans going into debt, they are a great tool when used properly. Credit cards don’t have to be expensive. You can even make money with them.

If you add credit cards to your finance toolbox, you must understand how to use them responsibly and that they will benefit you, not the credit card companies.

Responsibly using Credit Cards.

Credit cards: The problem

Before we discuss how to use credit cards responsibly, it is important to first recognize the issues with credit cards and why some people feel so strongly about them.

The biggest problem with credit cards is how much interest they charge each year. You’ll be charged interest on any credit card balance, even if you don’t pay the entire monthly balance.

The average credit card interest rate was 16.13% at the start of 2022. Many Americans pay a lot of interest yearly, as their credit card balance is $55,525.

You can be held back by credit card interest. The interest rates are notoriously high and compound daily. This means that the interest accrued on your credit card principal is increased.

So, why is it that so many people have managed to accumulate large amounts of credit cards and other debt? Three main reasons can I pinpoint:

  1. People spend money that they don’t own. They spend money they don’t have yet. They then pay off those purchases when they get paid.
  2. It’s easy to lose control over your spending, especially if it’s emotional.
  3. Credit cards are used as an emergency fund.

Credit cards are a great benefit.

  1. Before I get into the tips and tricks for responsibly using credit cards, let’s discuss a few of the benefits of credit cards.


  1. Credit cards can be a great way to build credit. Some personal finance experts (*cough* Dave Ramsey*cough*) will tell you that credit scores are unnecessary as they encourage more debt.
  2. It couldn’t be farther from the truth.
  3. First, debt can be prohibitively expensive in certain situations. Most people I know cannot afford to purchase a house in cash. A good credit rating is essential in this situation.
  4. Your credit score is vital even if you have no additional debt. Landlords can use your credit score to determine whether you can rent an apartment. Insurance companies use your credit score to determine your insurance premiums. Employers can also use your credit score to decide whether or not to offer you employment.


  1. The rewards that you can earn with credit cards are my favourite perk. You could be eligible for thousands of dollars in rewards and perks depending on how much you spend each year on your credit card.
  2. You have a variety of ways to earn rewards with credit cards.


  1. A credit card is safer than cash or a debit card because of the fraud protection they offer. You are not responsible for fraudulent purchases made using your credit card.
  2. Although debit cards offer fraud protection technology, this is not the case. The money someone fraudulently uses to use your debit card leaves your bank account. It may take some time before you get the money back, but it will happen if the purchase is fraudulent. You’re just out the money.

How to responsibly use credit cards

  1. After discussing the benefits and drawbacks of credit cards, let’s get into the real topic: responsibly using credit cards.


  1. It is important to understand your credit card terms fully. These terms can be found online and looking for your credit card agreement. These details you will want to review: Pay your bill promptly and exercise caution if you use your card to incur unwelcome interest or fees.


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