Have you ever had trouble with keeping tabs on your credit card spending? We have a rule of thumb that we think can help keep those pesky credit card balances in check. You’ve spent years working for your credit card – now it’s time you let your credit card start working for you.

Here’s the goal: Keep just one card you’re going to pay off every month. And put the rest in a drawer for emergency use only.

Why is this good for you to do?

According to bettermoneyhabbits.bankofamerica.com,“credit cards are great tools for building your credit history, and you don’t need to carry an unpaid balance to do so. Your best strategy is to use your credit cards and pay off the bill in full each month, so you keep your overall debt-to-credit limit ratio low.”

How is this doable?

·         Keep one credit card for your convenience and don’t go above 30% of your available credit line

·         Don’t spend more than what you can pay off per month. For example, if you have a $1,000 credit limit, try not to spend more than $300 per month. At the end of each the month, pay off that $300 balance.  This is going to help you keep your balance within the debt-to-credit limit it needs to be in to practice good credit health.

·         If you have a rewards credit card, feel free to use it! As long as you can pay off the balance each month, you’ll also be receiving the benefits of your reward card, whether that be points, cash back, or percentages off your next purchase.

·         And the biggest win? When you pay off your credit card balance every month, you will pay no interest, unless you access a cash-advance from your account.

Remember, having multiple credit cards isn’t necessarily a good move in the grand scheme of all things credit. 10% of your credit score is determined by the type of credit you have.

In addition to keeping an eye on your credit, if you see your credit score and realize you’re juggling too many credit card bills, especially ones with variable interest rates, a personal loan from LendingPoint may be able to help. Having only one consistent, affordable monthly payment is far easier to manage, and an installment loan weighs less against your credit score than revolving debt. See what we can do for you. Our application process is simple and quick, and once approved you could have funds deposited in your account in as little as one business day.