11 Credit Card Rules You Should Follow

11 Credit Card Rules You Should Follow

Credit cards are a pretty controversial topic in the money world. Are they a good thing to have? Should you avoid them all together? What credit card rules should you be following?

Famous radio host and money guy Dave Ramsey believes credit cards are evil for 99.9% of situations and should never be used. This is the only thing I don’t agree with Ramsey on.

If you know how to use them correctly, credit cards can help you build a great credit history and give you lower interest rates for your future mortgage. It’s not a hard science, but here are 11 credit card rules you should be following.

credit card rules

11 Credit Card Rules You should be following 


Every time you apply for a credit card there is a hard inquiry put onto your credit score which is going to lower it. Bad. Applying for too many cards really quickly just to see what sticks is going to decrease the number of cards you’ll actually be accepted for!

Once you’ve had the cards for a while the number you have won’t affect your credit score long term.

Having more than one card can help your credit utilization but this can easily be done with fewer cards that have a higher limit and a low balance. Don’t understand credit utilization or your credit score?  Check out our post on credit scores! 


Every credit card company or bank offers some kind of reward card. You can earn cash back, groceries money, free movies, or travel credits. Sounds good huh?

A credit card without a reward program is just a waste of an account! Personally, I have 2 credit cards, one is a cash back card and the other is a Scotiabank Scene card which gives me points towards free movies!


Credit cards that have higher rewards usually come with an annual fee as well as the regular interest rate. This can be anywhere from $5 to a couple hundred dollars a year.

This is money that you just don’t need to spend. It’s sometimes a good idea if you use credit cards wisely but why waste the money unless you’re absolutely financially stable. There are plenty of good rewards cards with no annual fee that you can grab.


My first card had a credit limit of $1,000 and I didn’t increase it for 4 years because I never had to. I’ve recently started to want to travel and will need a higher credit limit to be able to charge tickets or rooms before I pay them off completely. Now my limit is $2,500. I don’t want it any higher.

There is a very intense trap that you can fall into when you increase your credit score. It tricks your brain into thinking you have more money when you don’t. The more money you spend on the card, the more interest you’ll pay. Keep your limits as low as you can for your lifestyle.


Dave Ramsey always says “If you can’t pay CASH you can’t AFFORD it”. This is so true. If you need to use a credit card for an emergency, you should’ve planned ahead and started an emergency fund.

If it isn’t an emergency chances are the thing you’re charging to your card isn’t necessary for your life and you don’t really need it.

Tips to start your first emergency fund in 100 days! 


If you don’t have the money in your account right now to pay for whatever you’re about to charge on your credit card, wait. You don’t have the money so you can’t afford it.

Don’t get stuck in the thought process that you’ll have the money to pay for it next month and you’ll pay it off then. If you throw something on a credit card you’ll end up paying more money than the item was worth because of interest rates!


Carrying a high balance month to month is going to create so much interest in the long run. You’ll end up paying hundreds of dollars a year in interest which is just money you’re paying so banks can get richer and you can stay poorer. 

In addition, carrying a high balance on your card is going to hurt your credit score because of your credit utilization.


If you pay just the minimum payment each month on a card you’ll be paying it off for decades. Minimum payments hardly even cover the interest that you’re being charged let alone actually paying down the principal on that account.

If you want to pay down your credit card quickly you need to attack the full amount, not just minimums.

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Do you have cards that are at different interest rates? If so, it’s always smarter to know and understand them. If you need to charge a big purchase to a credit card for whatever your reason is, charge it to the lower interest card always. Don’t make an exception on this.

This will also help you understand which cards to pay off first. If you have a card with a 20% rate and another with a 12% interest rate, pay down the debt on the 20% card first because it’ll cost you more money in the long run.


Knowing where your money goes is a key to being smart with credit cards. People often fall into the trap of charging little items here and there and acting like it’s not a big deal. If you charge a $2 coffee to your credit card every day for a month that’s $60 that you didn’t plan to spend. Once again, if you can’t afford to pay cash then you can’t afford it.

Fully understand where your money is going to really know how you use your cards and how you could use them better. Make sure to have the credit card company or banks app on your phone so you can see where the money goes easily.


Understanding how your credit score works is going to help you to understand how to use it to help your future. If you’re completely clueless on how credit scores work, please read our post on how they work and how to improve them. See it here! 



If you have any other credit card rules you think people should follow let me know in the comments down below! 

Thank you so so so much for reading! 

xo Taylor


Hey! My name is Taylor O’Halloran and I’m a huge fan of saving money any way I can.I’m obsessed with dogs and I love all kinds of cheese even though my stomach hates it.  I’m a recent university graduate who just wanted to do her own thing and see what happens! Follow me on the journey!

10 thoughts on “11 Credit Card Rules You Should Follow”

  • Awesome. I almost got murdered when I said I disagreed with Dave Ramsey, but I’m a huge fan of credit cards!

    Although I will say, I don’t mind a high limit. The higher the better for me! But the limit doesn’t affect how much I spend. Everything I spend I budget for!

    • Haha, Dave doesn’t like people that disagree with him! I think he’s teaching people that are completely clueless when it comes to their finances, people who can’t handle their credit cards. Y’know?
      Budgeting is great!

    • There’s so many people who don’t understand the importance of a credit score! It can really change things for ya!
      Thanks for reading 🙂

  • These are great tips! I just recently switched to a credit card with better cash back rewards, but am still working on paying down my balance. I really like to pay it off in full each month, but had a large purchase that I am still paying down.

    • It’s always smart to get those rewards so at least the card is doing something for you! I hope you get through the debt quickly and easily! You got this ☺️

  • Taylor
    I have thought a lot about Dave Ramsey and the no credit card envelop system. I struggle with that. I also struggle with “chasing my credit card” it is a real downer!! I don’t want my next pay check to pay for things i bought already 3 weeks ago.

    I have compromised with a debt card (which dave agrees with) but I question there safety if they were to get lost or stolen.

    I no longer write checks as the bank will do that for me and cash rolls right through my hands.

    Online banking helps but good old paper and pencil once a week is what keeps me on my toes!

    • Hey Tanya!
      It’s really hard to find a perfect middle between all cash and credit cards! I’m still figuring it out myself.
      It’s always good to use pen and paper no matter what the situation! Thanks for reading!

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