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Credit cards, when used wisely, can provide significant financial benefits and convenience. However, misuse can lead to financial difficulties. The Points Guy (TPG) offers several tips for responsible credit card use.
One crucial aspect is timely bill payment. "The most important aspect of using a credit card responsibly is making your payments on time," TPG emphasizes. Timely payments help maintain a good credit score, while late payments can incur fees and higher interest rates. Many issuers offer autopay options to avoid late payments.
Managing debt levels is also essential. Experts suggest keeping debt below 30% of available credit. TPG advises against carrying a balance on rewards cards due to their typically higher interest rates: "Those who use credit cards to earn rewards should avoid carrying a balance and incurring interest charges."
