Although credit cards are an extremely useful financial tool, there are certain risks and dangers involved with using them. However, if you use them wisely, they can make big-ticket purchases a whole lot easier and help you build your credit and earn great rewards and perks. Below we’ve listed some tips to help you use your credit card wisely.

Be Aware Of Your Responsibilities As A Credit Card Holder

Before you sign up for a credit card, ensure that you are well aware of the terms and conditions of the card, so you don’t negatively affect your financial standing by improperly using the card.

Choose The Right Type Of Card

There are a variety of credit cards available in the market. So, the card you get should be in line with your spending habits. If, for instance, you know you will likely be carrying a balance on your credit card, it would be best to get a low-interest credit card.

Don’t Overspend

When you have access to a high credit limit, it may seem tempting to live beyond your means. However, keep in mind that any balance you carry on your credit card will be charged interest. To avoid this, use your credit card responsibly and try to pay off the balance at the end of the month.

Keep A Track Of Your Credit Card Spending

Not only will doing this help you keep your spending in control, but it will also help you spot any inaccuracies in your billing statement. Make sure to dispute any inaccuracies immediately since it could potentially indicate credit card fraud.

Don’t Open Credit Card Accounts Unnecessarily

Just because you are eligible to have another credit card doesn’t mean you need to open a new credit card account, simply because you were offered a card. New credit card applications will negatively impact your credit score, and may just make it difficult for you to manage your spending.

Whether you are applying for a new credit card or already have several, don’t be afraid to relook the fine print for your card and renegotiate the terms with your credit card provider if they are not in your favor.