Apart from all their other benefits, credit cards just take the hassle out of paying for so many things. You swipe your card for a takeaway on Friday night, and again when you fill up your tank. It's such a simple way to pay for goods and services online or in-store, or when buying gifts – or when you spot something on sale that you’ve been thinking of getting, and the bargain price is the last incentive you need.

Unfortunately, the convenience of your credit card could lull you into the mistake of not keeping track of your spending. When the end of the month rolls around, it's a shock when your balance is much higher than expected. Still, you have to pay only the minimum amount due, don't you?

This is where many credit card users make a second mistake – thinking that you can pay the minimum amount due, then catch up next month. Because next month will bring new expenses – including interest due on the balance you left owing on your credit card. And every month that you don't pay the full credit card balance, you'll be charged interest on that interest again. That's how you can spiral into problem debt with your credit card.

Luckily, it's a spiral that you can avoid with proper credit card management. Used properly, a credit card will in fact improve your creditworthiness. Follow these 6 tips to build a better credit score, and you’ll cut your credit card costs, too:

1. Pay the full balance or more than the minimum

It's best to pay off your full credit card balance before the due date on your statement every month – that way, you won't be charged interest. Paying only the minimum is the easiest way to rack up the amount of interest you'll pay in total. Even if you can't settle the full amount, pay more than the minimum whenever you can – every rand that you pay towards the amount owed helps you pay less in the long run. Review your budget and adjust your monthly credit card spending, until you can pay off the full balance every month.

2. Know your billing cycle

Your credit card doesn't charge interest immediately – you usually get an interest-free period of up to 55 days. But this works only if you understand your billing cycle and pay your balance in full before the due date. Once you know when each billing cycle ends, you can plan bigger buys just after the cycle starts. That gives you the longest possible time to pay off the balance without being charged interest.

3. Use the budget facility carefully

The budget facility lets you split large payments into instalments. It can be helpful for planned expenses like a flight or necessities like a new fridge. But it often comes with higher interest rates, so using it for everyday items can cost you more. Before you swipe on budget, ask yourself 'Is this something I'd still be happy to pay for 3, 6, or even 12 months from now?'

4. Avoid withdrawing cash

Using your credit card at an ATM is an expensive way to withdraw cash. You'll be charged a fee and start paying interest immediately – no grace period, no exceptions. If you need cash urgently, consider other options that could be more affordable, like a personal loan or overdraft.

5. Automate your payments

Missed payments lead to penalty fees and can damage your credit score. This is especially important if you're young and have quite a short credit history. Credit bureaus regard responsible credit card use as a reliable, effective way to start building a healthy credit score. Simply forgetting to make a payment can damage your budding credit record through absent-mindedness. Set up a debit order or automatic transfer to cover your credit card each month, and stay on track without needing to think about it.

6. Track your spending and set your own limits

Your credit limit might be R20,000, but that doesn't mean you should spend it all. Credit cards are a form of borrowing – and borrowing costs money. You can use the Money app to keep an eye on your card activity, break down your spending by category, and set spending limits for yourself that align with your budget.

Good habits equal a good credit score

Responsible credit card use can help you build a solid credit profile, which makes it easier when you need to get a bigger credit application approved – for example, a home loan. A healthy credit score also makes you more likely to secure better interest rates on further credit.

Credit cards aren't your financial enemy. Used mindfully, they're in fact one of the most helpful tools to maintain financial wellness. With a bit of planning, you can avoid unnecessary costs – and enjoy all the perks that credit cards offer.