How to Responsibly Use Your Credit Card

Credit cards can be wonderful tools when you really need them. If your car breaks down or you need to see the doctor, having those lines of credit can save your job, your health, or both.

However, you might be tempted to use your plastic irresponsibly. You might charge items that you can't really afford right now, from several trips a month to the movie theater to a new, high-dollar gadget. When these things happen too often, you rack up debt that you can't immediately repay; this sucks you into the pit of high interest rates. What was a twelve-dollar pizza ends up costing you twenty bucks or more by the time you pay off that credit-card charge.

Responsible credit-card use will ease your stress, preserve your credit, and ensure that you have lines of credit in emergencies. These tips will help you work toward the financial responsibility that you'll need for your future.

Read the fine print. You're responsible for knowing the charges that your card's issuer can add to your account. By knowing about these fees, you can avoid most, if not all, of them. Saving even a few dollars a month will add up over time.

Pay attention to the monthly statement. When you get the statement, go over every purchase to be sure that they're really yours. You should also keep track of your balance throughout the month so that you don't inadvertently charge more than you can really afford.

Pay the full balance every month. Granted, this isn't always possible; if you already have credit-card debt, paying off the bill could take more than a few weeks. If that's the case, apply as much of your money as possible to that bill. The sooner you pay off those charges, the sooner you escape the interest.

Don't use your plastic unless you have an emergency – or know that you'll be paying off the balance when the bill shows up. Carrying a balance for purchases that you didn't really need to make only costs you more money. Instead, save up and pay cash for those unnecessary, but fun, items.

Ask the credit-card issuer to lower your interest rate. This might happen; it might not. There is nothing wrong with asking, though, because there is a chance that you'll get a break on interest if you inquire about the possibility.

Also: make your payments on time – even if you're making only the minimum payment every month. If you're late, or skip out on the bill entirely, you become a bad investment. The card issuer is not likely to lower your interest rates, or give you other breaks, if you prove to be an unreliable customer.

Don't be suckered by points programs. Take advantage of the points that you earn through responsible credit-card use, but don't go out of your way to charge things to your card just to get the rewards. Irresponsible spending ends up costing you more than the points, and the rewards attached to them, are really worth.

Being responsible with credit cards can be tough, because this requires you to say "No" to impulse buys and many of your "fun" purchases. However, when you need the line of credit for something important, it will be there – and so will the fun things that you'll buy, outright, with cash that you can really afford to spend.