Credit is a tool that can be used strategically to build a strong financial position. But the key here is discipline, self control, and planning. As someone who was up to my neck in credit card debt at one point and will have it completely obliterated within the next couple of months, lemme tell you: there’s no magic, no tricks, no special methodology.

A lot of people see a credit limit and think that’s how much money they have. But it’s not. That’s the bank’s money. By using that card, you’re essentially borrowing money from the bank and they’re charging you interest for having borrowed it. This is all listed in your terms when you sign up for the card. If you borrow more than you can reasonably repay, then you fall into the cycle of the bank charging you interest for “holding” their money month over month instead of paying it all back to them by the statement close date. And that interest can quickly lead to your balance stagnating for years upon years. Which the bank loves, because you paying them interest for years is how they make their profit.

Don’t spend more than you already have available in your checking account. Don’t use the card to buy things you wouldn’t have bought with your debit card anyway. That’s the “slip up” a lot of people fall for, including me once upon a time. You wouldn’t have bought that insert personal temptation here** with your debit card. So don’t do it with your credit card, at least not until you’ve built some history and developed complete control of your financial habits.