How Often You Should Use Your Credit Card

How Often You Should Use Your Credit Card
Highlights

A credit card is like a pre-approved personal loan that a person can use to make purchases or borrow money against.

A credit card is like a pre-approved personal loan that a person can use to make purchases or borrow money against. It's financially handy in times of financial crisis such as hospitalization, purchasing a new gadget or more.

How you use your credit card is important for a number of reasons. Your credit card usage affects your credit scores and is also responsible for keeping your card active. It's easy to apply for a credit card online but how often you use your credit card has to be an informed decision made after assessing your financial situation since you don't want to spiral into debts from overspending or have your credit card canceled due to inactivity.

In addition to this, using your credit card wisely will also help you benefit in terms of reward points and if you pay an annual credit card fee, well that's another reason to use your card to ensure you're getting enough value from the card. However, deciding how often to use your card can be tricky and that's why we're here to help.

To get a credit card apply online, as it's simple, easy and efficient. Once you've applied for and received your credit cards, you can read through these points to ensure you're using your credit card wisely.

Keeping your card active: Although there is no specific minimum requirement of how many times you should use your card between months before it becomes inactive, we recommend that you use your credit card once every 3 months. Your credit card company is not liable to inform you before closing your card for inactivity, hence it's always better to use your card once in 3 months to avoid a situation where you try to use your credit card and it gets declined because it's closed.

Credit Utilization ratio: With a credit card, it's easy to go out and use it for every single opportunity you get. This should be avoided if you don't want to end up with a huge bill you can't pay at the end of your billing cycle. It's always advisable to stay below 30% of your total available credit. You don't want to end up seeming reckless by maxing out your credit card.

To maintain a good credit history: How often you should use your credit card will also depend on whether you can pay out in full the amount you use. Failing to pay your credit card bill in full each month will only pile on credit which may lead to a bad credit score. We suggest you to use your credit card once or twice a month and pay them off in full to maximize your credit score.

Now remember just because you need to use your credit card as often and once every 3 months, it does not mean you have to make big purchases. You can use it for simple, small purposes like recharging your mobile internet or online banking or when you want to pay electricity bills and so on. There can be no direct answer to how often you should use your credit card as it truly depends on a person's financial needs. However, using your card for an amount you are sure of paying out in full is a great point to consider when deciding whether to use your credit card or not.

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