Credit Cards: Adopt These Good Habits and Thrive

A new credit card is about more than just choosing the right one. Watch this episode of Mountain America Credit Union’s Guiding You Forward podcast featuring Jade Beckman, vice president of consumer lending, for things you’ll want to consider.

You’ll learn key points to help:

• Control credit card spending

• Evaluate introductory offers and ongoing terms

• Understand rewards programs—value and cost of each point

• Utilize the fraud protection benefits of credit cards

Once you get a credit card, there are many good habits that may help you save money and spend smarter. The first, and perhaps most obvious, is to not overspend. Manage your spending by budgeting ahead of time for your credit card purchases and then pay your bill in full with that money.

No matter what leads you to get a new credit card, it pays to understand all the terms—be aware of your interest rate, grace period and what the new terms will be after any introductory offers end.

What about rewards credit cards? For many people, earning rewards points is the main reason they choose a particular credit card. When considering offers, make sure you understand how much each reward point is worth. Also, choose a card that works with your lifestyle. If you don’t travel much, for example, it doesn’t make sense to carry a credit card that only pays in travel rewards. If you can never remember which purchases are earning rewards for that month, choose a card that let’s you earn on all purchases.

When it comes to fraud protection, your debit card and credit card work fairly similar in disputing a fraudulent charge. However, a credit card provides an extra layer of protection in that the scammers get access to a line of credit instead of direct access to your money.

If your debit card is compromised, your money is at risk because the card is tied to a checking or savings account. But since your credit card is a line of credit—essentially a loan—it keeps the money you need for day-to-day spending out of the hands of criminals while you wait for fraudulent charges to be refunded.

Click here to watch our video.