- When using credit cards, you want to take the right steps to build your credit and avoid debt.
- We collected some of the best credit card advice from TikTok creators so you can learn what you should and shouldn't do.
Personal finance advice, including credit card advice, is plentiful on TikTok.
Many creators share credit card advice on social media platforms like TikTok. If you're new to building credit or have been thinking of getting a credit card, you may wonder which advice to trust and which to avoid. The following TikTok advice can help you use credit cards wisely.
1. Get a credit card to build credit and earn rewards
Some people caution against using credit cards because of the dangers of credit card debt. But if you use a credit card responsibly, you can avoid debt and benefit in many ways.
The couple known as the.law.says.what, use their TikTok account to share videos that simplify legal jargon and talk about other important issues.
In one video, titled "things I wish someone would've told me, part 2" they discuss the importance of getting a credit card to build credit and earn rewards.
Their advice is legitimate. Don't assume that you should avoid credit cards. You can use a credit card to build your credit -- which can be helpful when it's time to get a loan in the future, such as to buy a house or car.
You can also use rewards credit cards to earn money back and other perks on your regular spending. Who doesn't like free money?
2. Aim to keep your credit utilization under 30%
TikTok user addison.jarman shares money tips with her audience. In her video titled "how to have good credit & avoid debt," she talks about why you shouldn't use all of your available credit. Instead, aim to keep your credit usage under 30%.
This is solid guidance. Why? Your credit utilization ratio, or how much of your available credit that you use, makes up 30% of your FICO® Score. Experts recommend using less than 30% of your available credit if you're aiming to have a good credit score.
3. Pay your entire credit card balance to avoid interest charges
Yet another TikTok video with good advice is one titled "What credit card companies don't want you to know." In this video, erikakullberg discusses why paying your entire statement balance is best.
While you may prefer to pay the minimum amount due, she cautions against this choice. If you only make the minimum payment, you'll be charged credit card interest -- which can add up quickly.
This is a good recommendation. If you don't want to pay extra fees and want to avoid falling into credit card debt, it's a good idea to follow her guidance when paying your credit card bill.
4. Use a credit card instead of a debit card
TikTok user nicktalksmoney shares money guidance and frequently discusses important credit card topics. In his video titled "Debit vs. Credit cards," he discusses why it's a good idea to use your credit card instead of a debit card for regular, everyday purchases.
He notes that a credit card offers better fraud protection. Additionally, you can earn valuable rewards if you pay for purchases with a rewards credit card.
He's right. Most debit cards offer little to no rewards.
Additionally, debit card fraud protection is limited, and it could take the bank a long time to thoroughly investigate a fraud claim, which impacts your bank account balance.
5. Get a credit card when you turn 18
Thereakmelaninking is a realtor who shares helpful entrepreneurship and money tips on TikTok. In his video titled "Three things you should do as soon as you turn 18 to get ahead of everyone else," he outlines three smart money moves you should make as soon as you become an adult.
The first suggestion he gives relates to credit cards. He advises getting a credit card as soon as you turn 18. He notes that by doing this, you can build your credit, which could make it easier to qualify for a loan if you ever want to get a car or house.
This is excellent advice. A good credit score can help you unlock better financial opportunities in the future. It's not a bad idea to begin working to build your credit as soon as you can. Future you will be thankful that you got started early in life.
You can benefit financially by using credit cards to your advantage. If you're ready to apply for a new credit card, review our list of best credit cards.
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