https://www.youtube.com/c/lexingtonlaw - Credit cards are a great way to build credit and earn rewards, but they can also be a source of financial stress if not used wisely. It's important to understand how credit cards work before using them to avoid getting in over your head.
Watch this video as Lexington Law discusses in detail how to properly utilize your credit cards while protecting your credit.
You need to keep in mind that when using a credit card, you're borrowing money from the bank that issued the card. You'll have to pay that money back, plus interest and fees if you don't pay off your balance in full each month. This is why it's important to always make at least your minimum payment on time if you can’t pay your balance in full; otherwise, you'll be charged late fees and your interest rate could increase. Additionally, it's a good idea to keep your credit utilization low, which means using less than 30% of your credit limit. This will help keep your credit score high.
By using credit cards wisely, you can keep your credit in great shape while enjoying the perks of owning one.