Easy ways to use your credit card wisely

Credit cards are really useful for shopping and, let's not lie, many of us use our credit cards for shopping because it's convenient and safe. Some of us may even get rewards for paying with our credit cards. With the rise of online shopping, your credit card can be a handy tool to get the things you want. But, as many of us know, overusing a credit card can lead you down a dark path of debt. This is why it’s a good idea to brush up on some credit card tips as 'silly season' approaches.

To get the maximum benefit from your credit card, you need to be selective and prioritize what you are going to buy on credit. Here are a few tips to help use your credit card wisely.

Tips for responsible credit card use

1. Don't use your credit card to pay off debt

Rather re-evaluate your financial position and ask for guidance from a financial advisor.

2. Don't swipe to fund irresponsible spending

You don't have to make big purchases to create a ton of debt. Those small costs can add up quickly: A couple of dinners, a family day out or a quick getaway may not cost a fortune, but they push your balance up little-by-little.

3. Use the interest rate to your advantage

A credit card may come at a lower interest rate than a personal loan if you need to apply for credit.

4. Never spend more than you can afford

Don't think of a credit card as your money. Remember, it's borrowed money that must be paid back.

If used responsibly, a credit card is a great tool for managing your money. It can help you improve your credit score over time and save you money when you use it as a tool to support your budget.