The Most Important Rule in Award Travel

Award travel using points and miles typically involves signing up for and using credit cards. It’s important to have a strong foundation of financial responsibility before signing up for new cards. The most important rule in using credit cards is to pay your bills on time and in full each month. This practice ensures that one avoids interest charges, late fees and damaging one’s credit score. 

The goal in award travel is to maximize your purchases and everyday expenses to work for you. If one is carrying balances and paying interest, you’re working against yourself and negating any awards accumulated via spend. Never spend beyond ones means to pay off balances.

Important Rules in Using a Credit Card:

• Pay on time
• Pay your balances in full each month
• Keep overall credit utilization below 30%
• Avoid cash advances
• Understand card benefits

Bottom Line

Credit cards can be a powerful tool in your wallet but they can quickly become a liability if not used properly. Remember the key principles to using credit cards: spend only what you can afford, pay bills on time and pay off the balance every month. If you find yourself in debt, remember there are ways to break out of it with discipline and attention. It’s never too late to start spending responsibly and earn rewards with a credit card.