Advice for First Time Credit Card Owners
- Steve Cage
- May, 28
Are you taking credit card for the first time? It could be interesting and exciting to receive a credit card for the first time. You may feel that you are now free to spend as you like. After all, there is nothing that you can’t do with a credit card, right? Wrong. A credit card is not just easy finance, it is a major financial responsibility.
If you don’t handle it well, you could end up hurting your credit score for life. Here are a few ways in which you could make credit card ownership easier and more fulfilling for yourself.
Own only one card
Most young people get several credit cards offered by various companies. You may be tempted to get two credit cards. However, you need to start with only one. Try to handle one properly before you decide to choose a second. Remember, it is highly unlikely that you will need a second card if you are spending your money wisely.
Use only half of your available credit
No matter how much credit is available to you, make sure that you don’t use more than 50% of it. It is always a wise thing to follow the 50% limit. This will keep your credit card going and save some money for emergencies as well. You will always be able to pay credit card bill, often in full, because you will be able to manage your credit with ease.
Use only for necessary expenses
There is absolutely no need for you to extend your credit card for every purchase you make. If you have sufficient cash available, pay with cash and say goodbye to the card. Use your card only for transactions where you really need it. In fact, you can decide to pay for your groceries or gas with cash and the rest of the expenses can be handled by credit card. An arrangement like this will save you a lot more money than you can imagine.
Pay in full
If you follow the tips mentioned above, you will be able to pay for your debt in full every time. Paying the debt in full will help you enjoy the benefits of your credit without worrying about a high rate of interest.
Pay on time
Never delay your credit card payments. Late payments will make you pay a lot more than you intended to. Moreover, consistent low payments will have a negative impact on your credit score. Therefore, it will be better to always ensure that you pay on time.
If you are going through a financial crisis or think that you won’t be able to pay in full, check the minimum payment requirements. Pay slightly more than the minimum requirement and you will be good to go.
Handling credit is not an easy job but if you plan well in advance, it will be fairly easy to accomplish. Make sure that you use your credit responsibly. If you spend on booze and weekend binges regularly, you can expect to land in trouble sooner or later.