Beginner’s Guide to Building Wealth Step by Step

✅ Do’s: How to Use Credit Cards Wisely

1. Pay Your Balance in Full
Interest rates on credit cards can be as high as 20%–30%. Paying your bill in full each month saves you money and keeps you debt-free.

2. Always Pay on Time
Late payments mean penalties and a hit to your credit score. Automating your payments or setting reminders can save you a lot of stress.

3. Keep Utilization Low
Your credit utilization ratio (how much of your available credit you use) should ideally stay below 30%. This keeps your credit score healthy.

4. Take Advantage of Rewards
Many cards offer cashback, discounts, or points. Use these perks—but only on purchases you were already planning to make.

5. Track Your Spending
Checking your statements regularly not only helps with budgeting but also protects you from fraudulent transactions.

❌ Don’ts: What to Avoid With Credit Cards

1. Don’t Max Out Your Card
Using your entire credit limit signals financial stress to lenders and lowers your credit score.

2. Don’t Pay Only the Minimum
Paying just the minimum keeps you stuck with interest for months (or even years). Always aim to pay more.

3. Don’t Take Cash Advances
With high fees and immediate interest charges, cash advances are one of the most expensive ways to borrow.

4. Don’t Apply for Too Many Cards at Once
Each new card application creates a hard inquiry, temporarily lowering your credit score.

5. Don’t Ignore Fees and Terms
Annual fees, foreign transaction fees, and hidden charges can sneak up on you. Read the fine print before signing up.