One key piece of advice I always give to someone new to credit cards is to keep your credit utilization ratio below 30%. This means using no more than 30% of your available credit at any given time. Early on, I learned that even if you pay your balance in full each month, letting your card max out or come close to it can still hurt your credit score because of how utilization is reported. The most important thing to keep in mind is to monitor your spending regularly and make payments before your statement closes to keep reported balances low. Setting up alerts or using budgeting apps helped me stay on track. Keeping utilization low shows lenders you're responsible with credit, which is crucial for building and maintaining good credit over time.
I want to give one key piece of advice to someone new to credit cards who wants to maintain a healthy credit utilisation ratio: make multiple payments each month. Instead of waiting until your statement's due date, consider making smaller payments throughout the month. This approach helps keep your balances low at all times, which can positively impact your credit score and demonstrate responsible credit usage. The most important thing to keep in mind is to pay more than the minimum each month. While paying off your entire balance is ideal, if that's not possible, even slightly exceeding the minimum payment can help reduce your overall balance and keep your credit utilisation ratio low. This not only helps avoid excessive interest but also supports long-term financial health.