Good news for affluent Americans: Citigroup has just launched two new credit cards just for you. The Citi Stata Premier and Strata Elite credit cards are designed for those looking for premium lifestyle benefits. Perks of the exclusive cards revolve around travel, and include dining rewards, access to airport lounges, and round the clock concierge services. The exclusive privileges included with the luxury cards are intended for high spending customers. Citigroup hopes to compete with other top tier cards like Amex Platinum and Chase Sapphire Reserve.
Of course, most of us use “regular” credit cards. And when it comes to managing credit cards, there are only a few simple rules, and all of them revolve around not overspending and getting into debt. The good news about credit cards is that they offer outstanding benefits like purchase protection, extended warranties, and cash back.
On the other hand, if you don’t use a credit card wisely, you could wind up in a situation where you have a lot of debt gathering a lot of interest with a credit report that could prevent you from owning a home or buying a new car anytime in the future.
This post was updated on July 30, 2025 to include news of Citigroup’s new high-spending credit cards.
Only Spend What You Can Pay
One of the most important tips for any credit card user, no matter their budget, is only to spend what they can afford to pay right now. It won’t surprise anyone that because of how easy it is to spend on a credit card, the temptation to overspend is almost always on your mind.
If you want to avoid overspending, the best thing you can do is set a limit for yourself and stick to it every month, without exception. This could be anywhere from $250 to $2,500 a month, depending on your needs and budget, as sticking to the number is more important than the number itself.
Another way to look at this is to think of your credit card as a debit card, and you can only spend the money in your bank account at any given time.
Take Advantage Of Rewards
For many people, maybe even most people, the best reason to use a credit card these days is the rewards they offer. Between cash-back and travel points, if you use a credit card strategically, you can take advantage of rewards without overspending.
One example is using a credit card like the Discover it card, which offers rotating 5% bonus categories every quarter. If you use this card strategically, you could rack up a decent amount of cash-back points while also making purchases you would make anyway, like at a grocery store or gas station.
The hope is that if you stick to the same budget you would otherwise have, you can end up with some “free” money or travel points while also being able to pay off the balance every month.
Creating A Budget
The most important thing you can do is create a budget around your spending and know exactly how much you can spend on credit cards monthly. Get started by calculating your income and expenses over the last three or six months so you know exactly where your money is going.
Once you have a solid breakdown of your expenses, you’ll know exactly how much you can spend each month on a credit card, including necessary purchases like gas or groceries, and room for a few impulse purchases so you have a little joy in your life.
Limit Spending Power
When it comes to having one credit card, things can be good for you if you stick to your budget. Having multiple credit cards can be great for building up credit, which you’ll need to get a mortgage or buy a car. For this reason, numerous credit cards are often worth considering so your debt-to-credit utilization number is low.
The lower your credit utilization, the more likely you are to have a higher credit score, which means you’ll get more in life with things that require good credit. The thing is, even if you have multiple cards, you still only need to use one as your primary card. Just use your other cards for a single small purchase or two every month to keep them active, but then stick them in a drawer.
Say No to Store-Branded Cards
The temptation to sign up for store-branded credit cards can be high whenever you see an offer like 40% off your first purchase, as some stores can and will offer. However, all it takes is one missed payment on these cards, and even without overspending, you’ll have a 29.99% interest rate hitting your existing balance, which means your payment is almost one-third higher the following month.
There are some good store-branded cards, like the Target RedCard, but most people stick to actual credit cards with better benefits. Unfortunately, even if it’s your favorite store, store-branded credit cards are often some of the biggest offenders for driving people into credit card debt.
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