How Does a Credit Card Work?
A debit card is different from a credit card. When you swipe your debit card, the store will automatically withdraw money that you have in your bank account. When you swipe your credit card, your credit card company will be charged and will send you a bill of all your purchases monthly.
How to Use Your Credit Card to Your Advantage
Credit cards are convenient, you’ll earn rewards for spending money, and you can build your credit score. You can pay for all your purchases with a credit card and link your card to many different apps like Uber and Amazon to pay for your items. ValuePenguin.com wrote a great article for college students about the best student credit cards, talking about which cards offer the best rewards when you make certain purchases such as meals at restaurants. Rewards vary by credit card company, so it is important to do your research beforehand.
The Best Credit Card Habits
You should only use your card on purchases you know you will be able to pay back at the end of the month. Your credit card has a maximum line of credit, meaning that you can only use this amount of money on total purchases until you pay it back. This amount will replenish every time you pay back the amount you owe. You should never get close to spending your maximum line of credit! Another habit you should get into is keeping track of your monthly bills and due dates. Luckily, you can set monthly e-mails and texts to remind you to pay off your balance. Remember, paying the full amount you spent during the month on time is important to building your credit.