how to use a credit card in 5 easy steps 800+ credit score with NO debt

stop using a debit card and let me show you how to use a credit card in 5 easy steps. Welcome back to added value where we go over the money basics you never learned. So first, what's the difference between a debit card and a credit card? A debit card spends YOUR money from YOUR bank account. A credit card borrows the bank's money to pay back later. So once you have a credit card, I would start using it like a debit card. Everyone says this, but what does it actually mean? When you're at the grocery store, getting gas, grabbing food, things you already spend money on, use your credit card. What does that mean? You new TV, but you don't have money in your bank account? You put it on your credit card. Don't do that. Now that you're spending money on your credit card, set up autopay. Autopay: an automatic payment setting that pays a credit card bill on a scheduled date. You typically have three options: the minimum payment due, the statement balance or a fixed amount. How I avoid interest using autopay: 1. turn ON autopay. 2. set payment amount to full statement balance. 3. set payment date as due date. 4. make sure my linked bank account is funded. Speaking of paying your bill, you need to pay it on time. On your credit card bill, there's a due date. To avoid paying interest or late fees, pay your bill by that date. And you also need to pay your bill in full. This is how you avoid interest. Interest: the fee banks charge for carrying a balance. For example, my current balance on this card is $234.50 with a 28% APR. The math: Balance: $234.50, APR: 28%. 28% divided by 365 = .000767. Daily interest: $234.50 x .000767 ($0.18 a day). Monthly interest: $0.18 x 30 = $5.40 a month. If I don't pay, I'll pay about $5 or $6 in interest this month. And you might think that's not a big deal, but imagine when the balance gets to $1000 or $5000. Balance: $1000, Daily interest: $0.77, Monthly interest: $23.10. Balance: $5000, Daily interest: $3.84, Monthly interest: $115.20. That's how interest becomes dangerous fast. Now that you're using the credit card right, start learning how to earn and maximize your points and rewards. You'll probably start with a beginner credit card that doesn't have the best perks, but that's normal. As your credit improves, you can upgrade. I recommend looking into the next step. Pick a card that matches your lifestyle, gives you benefits you'll actually use. With the sign-up bonus. So if you are responsible, a credit card keeps you protected, helps you build your credit and earn points on money you're already spending.