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Understanding the Best Way to Use Your Credit Card

Credit cards can be a great financial tool when used the right way. But if we get a little reckless, they can end up hurting our finances. In this blog, we’re breaking down the difference between responsible and irresponsible credit card use, so you’ll never have to wonder what the best way to use your credit card is again. 

With so many options out there, it’s incredibly important to choose the right card for you. Before you sign on the dotted line and get yourself a new credit card, we recommend carefully reading the customer agreement and disclosures. To be a responsible credit card user, you’ll need to know the rules on interest rates, late fees, due dates, etc. 

Credit Card Best Practices

Now that you’ve picked a credit card you’re comfortable with, it’s time to review some best practices for using it. Begin building credit and maintaining a healthy credit score by following our top seven pointers listed below.

  • Pay off your card balances each month 
  • If possible, make more than the minimum payment 
  • Avoid skipping any card payments 
  • Don’t spend what you can’t pay back 
  • Use your credit card as a budgeting tool
  • Stay below your credit card limit
  • Check your credit score to track your progress

Comparing Debit vs. Credit Cards 

It’s an age-old debate, debit vs. credit cards; which should you use? When you make a purchase with a credit card, the cost of the item or service is not taken out of your bank account immediately. Instead, it gets added to your credit card balance. If you don’t pay your bill in full by a specific date, interest will be charged to your unpaid balance. On the other hand, when you use a debit card, the purchase amount will be taken directly out of your checking account. Therefore, your financial strategy on when to use your debit or credit card will partly depend on your budget and annual income. 

White River Credit Union VISA Credit Cards

At White River Credit Union, we believe your credit card should be convenient and reliable. With a highly competitive rate as low as 9.99% APR | OAC*, a simple application process, and various card benefits, WRCU’s VISA Credit Cards can help make banking a little easier. Plus, you build credit at the same time!

Free Resources to Learn About Credit at WRCU 

Our free webinar focus for the month of February is on the best way to use your credit card as a financial tool and develop smart spending habits before swiping that card. Click here to learn more about our webinar series, or sign up to attend. We hope to see you there!  


*Annual Percentage Rate | On Approved Credit

© 2020 White River Credit Union