Unfortunately "adulting" classes aren't a given. I know I didn't take any. But thankfully I had parents that taught me a lot about money, and budgeting, and credit. Not everybody does. And that can really get you in trouble when you get your credit card.
Here are some ways to use your credit card AND stay out of debt.
1. Spend within your means. Pay your balance in full each month.
2. Make monthly payments on time. Late payments often result in late fees, which can quickly add to your existing balance. You might also consider making multiple payments a month if it works with your budget.
3. Keep a low utilization ratio. Your utilization ratio is the percent of credit currently in use. Let’s say you have a credit line of $5,000. If you have $2,500 in purchases on your card at a given time, you have a 50 percent utilization ratio. As a general rule, keep your utilization ratio below 30 percent of your available credit to stay on track and prevent accumulating too much debt.
4. Understand your credit card terms
5. Don’t open too many accounts in a short period of time
(FinancialIQ) Photo: Getty/Bloomberg