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August 20, 2025
by David Malafarina
Our modern economy is built on the foundation of borrowing and lending money. Many traditional personal milestones have become inextricably tied to the use of credit, whether it’s purchasing your first car, attending college, or buying a home. Because of this, many consumers begin using credit cards as early as high school.
Responsible credit card use is an important topic to discuss. Improper credit card use coupled with the possibility of incurring debt can impede a consumer’s ability to secure proper financing in the future. Understanding how to most effectively use a credit card can go a long way towards achieving financial wellness.
To that end, here are five habits of responsible credit card use that can help you maintain financial stability.
One of the easiest ways to end up in debt is to spend outside of your means, which is why it is important to know how much you are spending and how much debt you are able to pay off each month given your personal financial situation. There are plenty of tools that can help, whether it’s physically writing down your spending or using an app to automatically track your budget. The importance of this habit is it helps you remain conscious of your finances, so you know when and where you need to cut back on spending, so you don’t fall into serious debt.
There are numerous budgeting methods you can follow to better manage your finances; too many to list in this article. You can check out our blogs on budgeting tips or watch our Helpful Hints videos to learn the various effective budgeting strategies.
There are two major reasons you should regularly review your credit card statements. The first ties into budgeting; you need to know how much you spend using your credit card each month. Your credit card statement can also help you visualize the different categories of your spending, whether it’s food, bills, entertainment, etc. You may not realize how much you are spending on a specific category and how that may be hurting your ability to afford the things you need.
The second reason to check your statements regularly is to identify if you have become the victim of fraud. Unexplained transactions on your credit card could be a sign that a criminal has gained access to your card. Preemptively closing your compromised card and disputing fraudulent transactions can help to prevent these fraudsters from negatively impacting your financial well-being. Studies show that people who fall victim to fraud spend years undoing the damage to their credit history, so it is important to catch it as soon as possible.
It sounds simple, yet so many consumers end up overpaying interest by not paying their credit card bills on time. Consider setting up automatic payments from your checking or savings account to pay off your credit card bills every month, so you never miss a payment.
If you find yourself struggling to pay your credit card bills on time, you are most likely spending outside of your means. Your credit limit is merely a reflection of the credit company’s faith in your financial situation; you should not take it as a suggestion for how much you should spend each month.
The advantages of paying more than your minimum monthly payments are twofold. Credit cards have notoriously high interest rates, and paying down debt quicker means paying less in interest later. As part of your budgeting process, you should try to set aside a sizeable, yet reasonable percentage of your monthly budget to pay down debt.
The second advantage that comes from paying more than your monthly minimum is financial security and mental health in the case of emergencies, when financial burdens are most felt. Not having debt to worry about when rebuilding after a flood, fire, or other unexpected emergencies helps to reduce tension in a stressful situation.
Take Advantage of Promos and PerksResponsible credit card use isn’t all about sacrifices and fastidiousness. Credit card companies offer perks to their customers to entice them to spend more using their credit cards in the form of airline miles, discounts on hotels, and event product catalogs where you can spend earned points to receive items like luggage, clothing, and more.
Many businesses offer special financing in exchange for signing up for a credit card. Many large home purchases such as furniture, windows, and appliances can be financed with zero interest as long as you sign up for a credit card and pay off the balance for the purchase by a certain date. However, don’t think of these offers as free money! Make sure you are able to pay off the balance within the agreed time, as most of these offers will apply the deferred interest payments onto your balance if you fail to make the payments by the end of the promotional period. Always read the fine print when looking out for these types of advantages.
Recently, there has been an increase in the number of companies that offer “Buy Now, Pay Later” financing. These businesses seek to provide easy access to financing for day-to-day purchases where loans from traditional lenders often don’t make sense.
While convenient, these financing options often tend to have higher interest rates than credit cards. Additionally, the “Buy Now, Pay Later” model can encourage overspending due to the ease of purchasing and make it harder to properly budget. If you are new to using credit or are trying to pull yourself out of debt, these types of repayment plans may not align well for your situation.
Being a good consumer means understanding the pros and cons of utilizing credit. Credit cards allow for a lot of consumer freedom, but only if you know how to use them responsibly. It’s important to use credit cards to build up your credit score so you can secure proper financing in the future for things like a mortgage or car loan.
David Malafarina is the Social Media Marketing Specialist for New Tripoli Bank. He has been a part of the team since 2018 and handles the Bank's photography, website, social media, and other marketing initiatives. He has a background in creative writing and video production and spends his free time playing various tabletop and card games.
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