A credit card is an excellent thing to have at any age, as it can help the owner build up their credit score. However, if beginners are not careful, they might also rack up debt they cannot pay off. First Credit card users should use their new credit cards with care. Follow the following list of tips to maximize the credit card’s potential:
Spend within a Budget
This is important for anyone. A credit card is not a get out of jail free card. When people use their credit cards, they should be able to pay off the debt in a few months. Do not put a year’s worth of purchases on new credit cards. If there is suddenly a job loss, the last thing beginners need is an accruing monthly balance at high interest rates.
Never Shop Sad
Advice like this might sound unnecessary, but post-break up is actually a horrible time to use a credit card. People might say to treat yourself, but they are not the ones getting your monthly statement. Be wise and stay home to watch Netflix and cry if having an emotional time. Those new outfits might not seem so great at the end of the month.
Do not get more than One Credit Card
Retailers will try to convince a person that a credit card from their department store is great. However, these cards can actually look bad to the bank, and lower one’s credit score. Just start with one credit card, and then add another in a couple year’s time if having both a mastercard and a visa is advantageous at that point.
Credit cards are very convenient in between pay days. They can help one juggle house expenses with food needs and provide for the occasional fun night out. Just make sure as a beginner to only purchase items that can be paid off at the end of the month.