 TITLE: How to Use a Credit Card Responsibly CONTENT: 2\\. Pay More Than the Minimum Amount\n------------------------------------\nBudget to pay above the minimum amount on your credit card whenever possible. A minimum payment is always better than a missed or overdue bill, but it may lead to carrying a balance on your account.\nOn your credit card bill, the _statement balance_ illustrates your credit card activity throughout the past billing cycle; your _current balance_ reflects the entirety of your account's up-to-date charges and fees. You don't need to pay your entire current balance every month to avoid accumulating interest. As long as you pay your statement balance each month, those charges won't carry over to the following cycle and you'll avoid incurring any new interest.\nMaking the minimum required payment can lead to expensive interest charges, especially if you're carrying a high balance. Even if you can't pay your complete statement balance, always try to pay some measure above the minimum—even just a little extra can help chip away at future debt. Plus, paying over the minimum helps reduce one of your credit score's most crucial components: credit utilization ratio.\nYour credit utilization ratio compares how much credit you have available (in individual credit card accounts and total) with the portion currently being used. The lower your ratio, the better, but it should stay under 30% overall. For example, an account with a credit limit of $1,000 should maintain less than a $300 total balance to avoid damage to credit scores. END