Smart Credit Card Strategies

Beyond choosing the right card, there are strategies that help you get the most out of it and pay off debt faster. Here are some of the most useful ones.

Strategy: consolidate your debts

Debt consolidation means transferring the balance of one or more cards to another with better terms, such as a lower interest rate or a promotional no-interest period. It's especially useful when your cards are near their limit, because it lets you reorganize the debt and reduce what you pay in interest.

Pay more than the minimum

Putting a little more than the minimum payment each month dramatically reduces the time and total cost of your debt.

Use rewards without chasing them

Use a rewards card for spending you'd do anyway and pay the full balance. Never overspend just to rack up points.

Keep your utilization low

Using less than 30% of your limit not only protects your score, it also gives you room for surprises.

A well-managed credit card is a tool for building credit and convenience; mismanaged, it's one of the most expensive debts there is.