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• My dad taught me a credit card is not an extension of your income — it’s credit the issuer expects to be repaid.
• When I got my first card, he told me to make manageable purchases and try not to carry a balance.
• He also warned me never to pay late and to use my credit card responsibly. 

Once I graduated college, started working, and bought my first house, I decided it was time to get my first credit card. Once I had the card – and its solid credit limit — in hand, I envisioned how I would use that card to finish furnishing my new condo, buy airline tickets, or cover Sunday brunch.

I was casually having a conversation with my dad and I mentioned that I got a credit card. His response was less than thrilled. “A credit card? That is the quickest road to debt! You have to handle a credit card responsibly.”

Right now credit card debt is at an all-time high of over $1 trillion according to a report by the New York Federal Reserve. So he wasn’t wrong: Americans are carrying the highest level of credit card debt ever and paying the high interest rate charges that come with that.

After that conversation with my dad on how to responsibly use a credit card, here are three pieces of advice that I still use to this day, 20 years later:

1. Start with manageable charges

Instead of immediately charging that $2,000 dining room table, make reasonable charges that you can pay off quickly and won’t put you into debt. When you use a credit card to purchase an item you really can’t afford, you end up carrying that balance longer and watching it grow due to interest.

Understand that a credit card is not an extension of your income. It is an extension of credit that the credit card issuer expects you to pay back.

When I bought my new couch, instead of putting it on a credit card and making a series of monthly payments to pay it off, I watched it until it went on sale (40% off on Black Friday) and bought it with cash.

2. Pay the balance off every month

The optimal way to use a credit card is to pay the balance off every month so you are not in debt. With most credit card interest rates being in the double digits, carrying a balance every month actually costs you money.

Also, when you pay the card balance off every month, your credit utilization ratio stays low, which has a positive impact on your credit. If your utilization is over 30% it can have a negative impact on your credit score.

3. Never pay late

Once those credit card bills start coming in every month, there’s one thing you must do: pay at least the minimum amount due by the due date. My dad is serious about his credit, and so am I.

When you make a late payment, you may be charged a late fee (unless you have a credit card with no late fee), plus an interest payment on the unpaid balance. Late payments can also hurt your credit score.

When you create your online account, you can set up free text or email alerts that will notify you a few days before your bill is due. Or, if you have a good handle on your spending, take it one step further by signing up for auto-payment so you never have to worry about being late.

Find the Right Card for You

Checking to see if you’re pre-approved for a credit card offer can help you find the right card while safeguarding your credit score. See our guide for the best credit cards with pre-approval for more information.