How to Use Your Credit Card as a Financial Tool – Not Just a Payment Method

A credit card is more than just a convenient way to pay—it can be a powerful financial tool when used strategically. From managing everyday cash flow to reducing debt and improving your credit score, the right credit card strategy can help you stay in control of your finances.

Whether you’re looking to maximize your card’s benefits or take steps toward becoming debt-free, here’s how you can make your credit card work for you.

1. Reduce the Cost of Borrowing with a Balance Transfer

Carrying a balance on a high-interest credit card? A balance transfer could be an opportunity to save on interest and pay down your debt faster.

A balance transfer allows you to move your existing balance to another credit card—ideally one with a lower interest rate—so more of your payments go toward reducing what you owe rather than paying interest.

When considering a balance transfer, look for:

• A lower promotional interest rate – The lower the rate, the more you save.
• A reasonable balance transfer fee (if applicable) – Weigh the cost against potential interest savings.
• A clear repayment plan – Take advantage of the lower interest period by paying off as much as possible.

Lowering your interest rate could make it easier to take control of your debt and reach your financial goals sooner.

Click here to learn more about the balance transfer offers available to you.

2. Improve Your Credit Score with Smart Credit Habits

Your credit score plays a big role in your financial future—it affects everything from loan approvals to the interest rates you qualify for. Fortunately, using your credit card wisely can help you build and maintain a strong score.

Here’s how:

• Make payments on time – Your payment history is the most significant factor in your credit score. Even small, consistent payments help build a positive record.
• Keep your balance low – Using less than 30% of your available credit can improve your score over time.
• Maintain older accounts – A longer credit history works in your favor, so keep your oldest accounts open when possible.

By treating your credit card as a credit-building tool, you can strengthen your financial standing and open doors to better financial opportunities.

3. Use Your Credit Card to Manage Everyday Cash Flow

When used strategically, a credit card can help you balance your cash flow while keeping your spending organized.

• Automate recurring payments – Setting up pre-authorized payments for bills and subscriptions can simplify your financial management. CardWise Online and Mobile also allow you to setup automatic payments to pay your credit card each month. Click here to learn more.
• Track spending digitally with an account management tool – Reviewing your transactions regularly can help you stay on top of your budget. Tools like CardWise Online and Mobile not only allow you to stay on top your account activity in real time and track habits through spend insights, but also enable you to set controls and alerts to stay in-the-know. Click here to learn more.

The key to using credit effectively is staying in control—spend within your means and pay off your balance whenever possible.

3. Maximize Your Credit Card’s Features and Benefits

Your credit card may offer perks beyond just a convenient way to pay. Many cards include:

• Rewards programs – Earn points or cashback on everyday spending. Click here to learn more about Flex Rewards.
• Travel and purchase protection – Some cards offer travel insurance, extended warranties, or price protection. Click here to learn more about the protections available to you.
• Exclusive benefits – Save on select brands, retailers, or travel services. Click here to learn more.

Understanding your card’s features can help you get the most value out of every purchase.

Using Credit Strategically for a Stronger Financial Future

A credit card isn’t just a tool for making purchases—it can be an essential part of your financial strategy when used wisely.

• A balance transfer could help you lower interest costs and pay off debt more efficiently.
• Smart credit habits can strengthen your credit score and open doors to better financial opportunities.
• Leveraging credit card features can help you manage your cash flow and maximize financial benefits.