8 Smart Habits Every Credit Card User Should Know

• Written by Dawn Allcot
  

  Dawn Allcot

  Family travel, credit card rewards, building and repairing credit

  Dawn Allcot has been a steady contributor to GOBankingRates for nearly 10 years and is excited to join the team at CardCritics, sharing her best tips for managing credit and saving money. Dawn has 20+ years of experience writing about personal finance and travel, with thousands of stories published on prestigious sites like Chase, CNET, MSN, Yahoo Finance, Bankrate, The Points Guy, and others. A former magazine editor, she loves taking complex topics and making them easy for today’s audiences to understand, whether that means breaking down the basics of Bitcoin or comparing travel rewards programs for top-tier credit cards. With a passion for family travel and saving money, Dawn spends every spare minute she can taking road trips and riding roller coasters. You can read about her travel adventures at GeekTravelGuide.net and in the bestselling travel anthology Outside the Box: Traveling Families that Work, Educate, and Live on their Own Terms. Dawn lives on Long Island, NY, with her husband, their two teens, and five rescued cats.

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• Edited by Levi Leidy
  

  Levi Leidy

  Levi has worked with personal finance content since 2019. He tackles topics like banking, investing and real estate, with emphasis on how Gen Z manages their money. His work has appeared on GOBankingRates, MSN, Yahoo, Nasdaq and more.

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• Reviewed by Jasmin Baron
  

  Jasmin Baron

  Credit Cards, Travel Rewards, Loyalty Programs, Family Travel, Credit Building, Credit Scores

  Jasmin Baron is CardCritics’ senior editor, responsible for editing and writing credit cards, travel rewards, loyalty program, and other credit-related content. She is passionate about personal finance education and enjoys sharing tips and tricks for making the most credit card points and miles with her readers. Her expertise in maximizing credit card travel rewards originated from over two decades of aviation industry experience, including 18 years working as a pilot and college professor/flight instructor in her native Canada. Her work has appeared on sites such as CNN Underscored Money, Business Insider, The Points Guy, and point.me. When she’s not planning her next trip with credit card rewards, you’ll probably find her tinkering around in the kitchen, hanging out with her three kids, or playing with her dog, Benji.

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• Last Updated Aug 14, 2025

Eighty-one percent of U.S. adults had a credit card in 2024, according to the most recent Federal Reserve data. This is an increase of five percentage points over the past decade, meaning more people today find themselves needing at least one credit card.

While the term “credit card debt” might carry a negative connotation, it’s not inherently bad or irresponsible to use credit cards for everyday spending, especially if you leverage points, miles or cash-back rewards. Just make sure you’re using your cards wisely by incorporating these smart habits every credit card user should know.

Understand the Rewards Structure for Each Card You Hold

Some cards offer bonus rewards for things like gas or groceries, while others pay higher rates for travel-related purchases. Meanwhile, cards with rotating categories may allow you to choose where you earn rewards, or have preset choices that change monthly or quarterly. If you have multiple cards, keep a list of the bonus categories for each card so you can maximize your earnings.

In the case of travel rewards cards, you might be able to boost your earnings by booking through the card issuer’s travel portal rather than directly with the hotel or airline or through a non-affiliated third-party website.

Know the Perks (Beyond Cash Back)

Beyond cash-back rewards and points, many top-tier cards have additional benefits you’ll want to claim. Credit card perks can range from airport lounge access to cell phone insurance, purchase protection and price-drop guarantees. Read your card’s guide to benefits to understand the perks available to you.

Take Advantage of Welcome Bonuses

Credit cards with a welcome bonus deliver a hefty reward when you meet a minimum spending requirement within the first few months of account opening. The time frame and spending thresholds vary depending on the card, so it’s important to keep track of the deadline.

If you’re planning a large purchase, it might be a good time to open a credit card and use the expense to help unlock a welcome bonus. However, look beyond the bonus and consider if  the card is a good fit for the long term. Card inactivity can lead to a credit limit decrease or even account closure, which can negatively affect your credit score.

Read Your Statements

Whether you carry top-tier rewards cards or you’re just getting started building your credit, it’s important to review your monthly statements or check your online accounts for fraud frequently. Most credit card companies offer zero fraud liability but only if you report unauthorized charges promptly.

Reviewing your statements will also help you spot unexpected fees or billing errors, and can help you keep track of your spending and budget.

Set Alerts for Credit Card Use

In addition to reviewing your statements, set up email, text or app alerts with your credit card issuer so you’re aware of any purchases made. This can help you detect fraud early, as well as stay within your credit limit, especially if you have authorized users on the card other than yourself, such as a spouse or children.

Watch Your Credit Utilization Ratio

Your credit utilization, or the amount of money you owe compared to your available credit, makes up roughly 30% of your FICO credit score. It’s best to keep this number under 30% on any individual card and across all credit cards.

For example, if you have a credit card with a $3,000 limit, try not to carry a balance of more than $900 on it at any given time. This helps out your credit score, your standing with issuers and your ability to pay off your cards before incurring interest.

Pay Your Bill in Full, on Time, Every Month

Finally, avoid carrying a balance on your cards so you won’t get hit with credit card interest. Any rewards or benefits you might earn from your credit cards can quickly be erased by high interest rates.

This tip applies to cards with a 0% introductory annual percentage rates (APRs), as well. If you open one of these cards before making a large purchase, or to use as a balance transfer card, make sure to pay it off within the introductory period or you’ll be billed interest on your remaining balance.