Video Think before you charge

Follow best practices when using a credit card

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Learn about how your card works, pitfalls to avoid and how you can protect your credit history when you spend with plastic.

Key Takeaways:

  • Credit cards are convenient and can help you build good credit if you use them responsibly.
  • Make sure you understand your card’s key terms, including its interest rate, fees and policies.
  • Credit card rewards programs may offer cash back, points or miles. Some cards also offer perks, such as concierge service or travel insurance.
  • If you can’t pay off your credit card balance in full each month, try to at least make the minimum payment.
  • Keeping your balance below 30%* of your credit limit and avoiding applying for new cards unnecessarily could help your credit score.

* “What is a Credit Utilization Rate?,“ Experian Information Solutions, Inc. www.experian.com/blogs/ask-experian/credit-education/score-basics/credit-utilization-rate/.

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This is for informational and educational purposes only and should not be relied upon as investment advice or the basis for making any investment decisions. It has not been prepared with regard to the specific objectives, financial situation or particular needs of any specific person. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. Any opinions expressed are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or groups of UBS.

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