What Is the #1 Rule of Credit Cards? (2024)

The #1 rule of credit cards is to pay your bills on time and in full each month. By making timely and complete payments, you can avoid late fees, interest charges and credit score damage, which will help you maintain control over your finances as well as prevent the accumulation of excessive debt.

Keep in mind that the most important part of this rule is to pay on time, as failing to do so will lead to credit score damage. Although paying in full is extremely beneficial, it might not always be possible. If you can’t pay in full, you should pay as much as you possibly can above the required minimum payment.

Important Rules for Credit Cards

1. Always pay on time.
2. Pay your balance in full each month, if possible. If not, pay as much above the minimum required payment as you can.
3. Try to keep your credit utilization below 30% of your card’s credit limit. This will help you increase your credit score.
4. Spend within your means, and do not charge luxury purchases you can’t afford.
5. When looking for a new card, focus on rewards if you plan to pay in full each month. If not, focus on getting a low interest rate.
6. Only get a card with an annual fee if the rewards you would earn in a typical year more than cover the cost (or there are no cheaper options).
7. Before applying for a new card, check your credit score to make sure you meet the card’s requirements. Get pre-approved if possible.
8. Don’t take out cash advances unless it’s an emergency. They come with expensive fees, and interest starts accruing right away.
9. Check your statements every month to make sure there are no unauthorized purchases.
10. Get a credit card as soon as possible to begin building credit history and saving money.

Now that you know some of the most important things to do when you have a credit card, you can learn about the biggest credit card mistakes to avoid, as well as browse the best credit cards to get, on WalletHub.