💰 7 Habits to Build Credit & Avoid Debt

Credit cards can be a powerful financial tool—but only if you use them wisely. Done right, they build your credit, earn you rewards, and offer protection. Done wrong? They can lead to debt, high interest, and a lower credit score.

Here are 7 smart habits to help you stay in control:

• Pay on time, every time – Your payment history is 35% of your credit score. Set up autopay to never miss a due date.
• Keep your credit utilization low – Try to use less than 30% of your total credit limit to keep your score high.
• Pay off your balance in full – Avoid interest charges by never carrying a balance if possible.
• Only spend what you can afford – If you wouldn’t buy it with cash, don’t buy it with credit.
• Use rewards wisely – Cashback, points, and perks are great—just don’t overspend to chase them.
• Check your statements regularly – Catch fraud early and stay on top of your spending.
• Limit new credit applications – Too many hard inquiries can lower your credit score.

A credit card is a tool—not free money. Use it wisely, and you’ll boost your credit and stay debt-free. Pick from our top cards here or increase your credit for just $1 here.

Need to make some changes? Start small—set a payment reminder, check your balance, or review your credit card rewards. Your future self will thank you.

VIDEOS YOU MAY HAVE MISSED THIS WEEK

Here are the top videos you loved the most this week. Which one was your favorite?

Milan Singh may earn affiliate commissions from the links mentioned. All recommendations and opinions are Milan’s own. This may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers.