Credit Card 101

Pay your statement balance in full every month to avoid interest charges. Credit card interest rates average 20-28% APR.

Try to use less than 30% of your credit limit (ideally under 10%) to maintain a good credit score.

Set up autopay for at least the minimum payment. Late payments can drop your score 100+ points.

Match your spending categories to the right card. Use category cards for high-spend areas and a flat-rate card for everything else.

The sign-up bonus alone can be worth hundreds of dollars. Make sure you can meet the minimum spend requirement organically.

Review your free credit reports at least once a year for errors. You are entitled to one free report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) every 12 months.

Enable MFA on all accounts and set up transaction alerts. Report unauthorized charges immediately and lock your card via your issuer's app.

Reduce junk mail and identity theft risk by opting out of prescreened credit and insurance offers. OptOutPrescreen.com is the official site run by major credit bureaus that lets you stop these mailings for 5 years or permanently.

Pay all cards to $0 before statement close except one. Let that one report a small balance (1-9% of its limit) to maximize your FICO score.

Instead of closing unwanted cards, ask your issuer for a product change to a no-fee card. This preserves your credit history and total credit limit.