new credit card....any tips?

Question

i just got a new credit card in the mail and i have never used a credit card before....i always use a debit card and are they just about the same? any tips that i need to know before i start using it?

Answer 1

Your debit card deducts the money you spend direct from your checking account and there is no interest.

A credit card is like a loan. You charge things and they send you a bill every month. If you pay in full, there is no interest, if you do not, then they add interest and bill you the next month.

Debit cards do not build credit but credit cards do.

What I would do is use the credit card for everyday things be careful never to exceed 30% of your credit limit in any given month and pay in full before the due date.

This will do two things, first it will establish a pay history and second it will keep your debt to credit ratio very low. These two things alone make up 65% of your credit score.

If you can use your credit card correctly it will help you build your credit and not get in trouble.

Remember, it take years to establish great credit but only a couple of months to trash it.

Good luck.

Answer 2

A debit card takes the money directly out of your bank account. A credit card works the same way at a store...only you sign the paper & don't enter a pin. BUT, a credit card sends you the bill each month. If you can pay it off each time, it can be very helpful. If not, they charge you finance charges. It's very easy to rack up bills, thinking you have the money to back it. Then, you are left with huge debt!

If you can't pay it off each month, pay more than the minimum payment. Otherwise, you'll be paying forever on your bill. And, end up paying way too much in the long run. It's best to leave the credit card at home, and use it only for emergencies!

Answer 3

never ever, ever, ever, EVER charge more on the credit card than you know you can pay when it comes due every month. ALWAYS pay more than the minimum payment at least. best thing to do is pay it off completely every month so you don't have to pay interest charges.

using a credit card is spending money you dont already have in your pocket. when you use a debit card, it comes out of your bank account instantly so it IS money you already have in your pocket.

unfortunately, a credit card is something you need nowadays. not for shopping, but because you need credit in this world. you'll be in worse shape later down the road if you cut it up and just dont ever use it. the best way to start building credit for yourself is by using a credit card. the TRICK however is to not get stuck with unmanageable debt. i cannot stress enough to only charge what you know you can pay each month.

Answer 4

You'll have to pay it off each month on its due date or you'll be charged interest (assuming you make the minimum payment). Like another person said, if you been getting along fine so far, don't use a credit card. The points (or frequent flier miles) aren't worth it.

Answer 5

you have a money limit to spend, is like a loan that payments every month. I found interesting information about your answer & credit card options here. http://all-debt-consolidation-loan.blogspot.com/2007/07/chase-credit-cards.html Good luck!

Answer 6

Do not charge more then you can afford to pay every month. Always pay in full. Only deviate from this rule in an emergency. I.E. your car breaks down in the middle of nowhere and that's the only way you can pay to have it fixed.

Answer 7

http://creditcard.creditinspector.info has excellent info related to dealing with credit cards. Check it out!

Answer 8

first tip is if you wanna use it make sure you have money to pay for it, in other words just use yourdebit card and you dont have to worry about paying bills.

Answer 9

never spend more than you can afford to pay back

Answer 10

cut it up and use your debit card.