Whether you have your first credit card or have gotten yourself into trouble with several, it’s never too soon or too late to learn good credit card management habits.  Here are some rules to live by.

Know Your Why

If you haven’t already done so, now is the time to set some ground rules for yourself. First, you need to decide why you have a credit card.

Some cards offer incentives for using them. For example, the Visa® Platinum Card at VCNB offers UChoose® Rewards Points for every purchase. These points can be redeemed for incentives like gift cards, cash back and travel. Many of our customers use this card for much of their spending and then pay off the balance when it’s due.

Some credit card holders keep their cards for emergencies. If the fridge dies or you have a medical issue, a card to help you past this bump in the road offers peace of mind. Others use their card only for building credit or for specific kinds of purchases like hotels when they travel or just at the gas pump.

This is a personal decision for you to make and there’s no wrong answer.

Keep Your Debt In Check

We caution customers against allowing debt to accumulate. In fact, we encourage customers to never charge more than they can afford to pay off in a month and to actually pay off that balance monthly. Even a small balance left unattended can accumulate large interest charges and snowball into a massive sum over time. In fact, making the minimum payment on even a few hundred dollars could be costly: added interest could amount to hundreds of dollars over a period of years before the debt is paid off.

Make A Plan For To Pay Off Debt

If you have credit card debt, we recommend making a plan to pay it off as quickly as possible.

For most people, the first step toward paying off debit is making a realistic budget. Click here to read about the basics of building a good budget.  If your budget is tight and you think you don’t have extra money for paying off that debt, click here for some practical ways to cut expenses.

Finally, avoid accumulating more debt while trying to pay off the old. It may be a challenge but you’ll never see a zero balance if you keep charging what you can’t afford. For more on this topic, visit our partners at Nerd Wallet who have a repayment calculator and tips to help you.