HOW TO USE A CREDIT CARD 101:

Here's some Big Brother advice on how to properly use credit cards so that you can get free money instead of screwing up your credit. I'm going to make this super simple, so save this video. 1. Understand how credit cards work. First, you need to understand how credit cards even work. There are four things that you need to know: Your credit limit, your billing cycle, your grace period, and your statement due. Let's break those down. Your credit limit is how much credit you have. General rule of thumb: never use more than 30% of your credit limit. If your credit limit is $1,000, you wouldn't want to utilize more than $300 if you want to protect your credit. Your billing cycle. This is the time period where all of your purchases, they get added up before your statement is created or due. Basically, the time frame from when you use the card to 30 days later. Your grace period. This is the amount of time that they give you to pay back whatever you used before they start to charge you interest. The grace period is the amount of time that they give you to pay back whatever you used before they start to charge you interest. And the last one is your due date. And this is exactly what it sounds like. This is when the money that you borrowed is due. Now that we understand how credit cards actually work. Number two: Treat your credit card like a debit card. You don't spend money that you don't have. I used to think credit cards were for when I ran out of money, I'd use the credit card to hold me over until my next paycheck. Hell no. That is how you get cooked. You treat your credit card like a debit card. Only spend money that you have. The only reason you're even using the credit card is to build your credit and to get the free points and rewards. Free flight, free hotel, free lounges, cash back, credit card companies will literally pay you just for using their card, but only if you do it correctly. Number three: Pay it off in full every month. I usually pay mine off a week before my due date. Paying it off on the actual due date is too close for comfort for me. If you have any sort of bank friction or bank holiday, and you don't pay that card on that due date, that interest is going to cook you. That's what they want you to do. So don't give them that opportunity. Number four: Make them pay you. Use your credit card for your daily expenses, only spend money that you already have. They gave me 250,000 points just for spending $10,000 in my first month of having the card. I got my normal points just for spending money on the card, and I got an additional 250,000 points. I was able to redeem those points. I got a $2,000 a night hotel and Saint Barths completely free, just for using the card. Nobody teaches us about money as your big brother. I want to make sure that you understand.