Credit cards can be helpful purchasing tools, but if not used properly, your credit score can be negatively affected, making it difficult to get future loans.
To maintain good credit, these three tips should be followed:
First, try to pay off the balance in full each month. Doing this will prevent interest from being applied and will keep the balance from becoming too cumbersome to manage.
Next, remember that every time you apply for a credit card or cancel one, your credit score is negatively affected. That means, you should hold off on making any major credit changes in the months leading up to when you might need a home or car loan.
Lastly, avoid carrying a balance of more than thirty percent of your available credit for very long because potential lenders may perceive you as unable to manage your current finances.