7 Credit Card Rules to Live By
Let’s be honest—in a perfect world, none of us would need credit cards. We’d just use cash or debit cards, only spend what we could afford, and never have to think twice about interest rates or late fees.
But that’s not the world most of us live in.
Like it or not, credit cards are a part of modern financial life—and if you use them wisely, they can actually work in your favor. In fact, responsible credit card usage can unlock perks, build your credit score, and prepare you for life’s big financial moves, like buying a house, car, or going back to school.
So let’s break down 7 essential credit card rules that will help you get the most out of your cards—and keep your credit score strong.
Rule #1: Pay Off Your Cards Regularly (On Time, Every Time)
This one’s a biggie: Your payment history makes up 35% of your credit score. That means paying your card on time—every month—is one of the most powerful ways to build (or protect) your credit.
Ideally, you’d pay off the full balance each month. But at the very least, always pay the minimum amount due. Miss just one payment, and your score could drop by as much as 100 points—plus your APR (annual percentage rate) could jump to 30%, and you’ll get hit with late fees.
Pro tip: If you ever miss a payment, don’t panic. Make the payment ASAP, then call your card issuer. If it was a rare slip-up, they might waive the late fee—or even avoid reporting it to the credit bureaus.
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Rule #2: Automate Your Payments
Want to avoid the stress of remembering due dates? Set up automatic payments. You can do this through your bank or directly through your credit card provider.
Even if you set up just the minimum payment to go out each month, it can save you from costly mistakes. I do this myself—I aim to pay in full, but I always have the minimum automated just in case I’m traveling or forget during a busy season.
Rule #3: Ask to Waive Fees
Some credit cards charge annual fees—especially reward cards. Sometimes, those fees are worth it for the points, miles, or perks. But if you’re not using the benefits anymore, don’t just accept the fee.
Call your credit card company. You might be surprised how often they’ll waive the fee—or offer you a different card with no fee. Pro tip: They want to keep your business, so it’s always worth asking.
Rule #4: Negotiate Your APR
Your APR is the interest rate you pay if you carry a balance—and it’s often between 13% and 20% (or more). That adds up fast.
Here’s the trick: Call your credit card company and ask for a lower APR. If you have a good history with them, they might say yes on the spot. I’ve done this myself and gotten rates down to 8% on some cards.
Why does this matter? Because if your APR is higher than the return you'd earn investing your money, you’re losing money. So always aim to reduce your interest rates—especially if you occasionally carry a balance.
Rule #5: Keep Your Old Cards Open (and Active)
Credit age matters. A longer credit history = a better credit score. So even if you’re not using your oldest card much, don’t close it.
I still have my very first credit card from college (go Blue Hens!). I barely use it, but I keep it open to maintain my long credit history. If I get a notification that it might be closed due to inactivity, I’ll toss a small charge on it—like a Netflix subscription—and pay it off.
Tip: Stick to 2–3 main cards for simplicity, but keep those long-standing ones active with occasional charges.
Rule #6: Increase Your Credit Limit (But Only If You’re Disciplined)
If you’re managing your credit responsibly and not carrying balances, consider asking for a credit limit increase. Why? Because this improves your credit utilization rate—which is the percentage of your available credit that you're using. Lower utilization = higher score.
Example: If you owe $5,000 on a $10,000 credit limit, your utilization is 50%. But if you raise your limit to $20,000, that same $5,000 now looks like just 25% utilization. Huge difference in your score.
Just make sure this doesn’t tempt you to spend more. It’s a tool, not a green light to splurge.
Rule #7: Take Advantage of Hidden Credit Card Perks
You might be leaving money (and benefits) on the table. Many credit cards come with perks you might not know about:
Travel Rewards & Cash Back: Use your card, pay it off monthly, and enjoy the benefits.
Rental Car Insurance: Many cards offer free collision coverage when you use them to pay for your rental. I once had a rental car gate hit the car—my credit card insurance covered it completely.
Trip Cancellation Insurance: Some cards will reimburse you for flight changes or cancellations.
Concierge Services: Want concert tickets, dinner reservations, or event access? Some premium cards offer concierge help for just that.
Before you pay extra for something, check if your card already covers it.
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Closing Thoughts
Credit cards can be a trap—but they can also be a powerful financial tool if you play the game wisely.
By following these seven rules, you can:
Avoid fees and interest charges
Build a strong credit score
Unlock valuable perks and benefits
And remember: Credit cards aren’t mandatory. But if you’re going to use them, use them to your advantage.
If you have a question or topic that you’d like to have considered for a future episode/blog post, you can request it by going to www.retirewithryan.com and clicking on ask a question.
As always, have a great day, a better week, and I look forward to talking with you on the next blog post, podcast, YouTube video, or wherever we have the pleasure of connecting!
Written by Ryan Morrissey
Founder & CEO of Morrissey Wealth Management
Host of the Retire with Ryan Podcast