I need to learn how to handle my credit card.?

Question

I’m 24 years old and I love shopping for shoes and clothing. I just got my new credit card one month ago and I had spent $265.00 dollars my limit is 500.00. I want to know do you wait until you paid off and shop again or what do you do? How do you use your credit card?

Answer 1

I pay my cards off in full every month. If I can't afford to pay it off in full I don't buy it.

Answer 2

♥ Well I made the same mistake you did except I completely used all of my available credit. When I turned 18 I got a capital one credit card with a $500 limit. Being an 18 year old carless female [[who also loved shopping]] I ran it up within a couple of months. Once I did that I started paying the minimum payment [[which is all I could afford at the time]]. Once I become a little bit more financially stable I started paying over my minimum. My minimum was usually $10-12 and I pay $20-30 and even was able to swing $50 one month. I'm slowly working on it and its getting down, but I will NOT use it until I get it down to 0. Even then I plan only on using it for small purchases that I can pay for right away. Good Luck!

Answer 3

You CAN spend up until the 500.00 limit. It is BEST to use it and pay it off every month. The interest can get HUGE!! It is also a good idea to not max it out, leave a 100 safeguard there. Good luck and please, be very careful with it, it can put you in huge debt if you are careless.

Oh, and keep track of what you spend and pay. If you think you have more credit than you do, and you go over, they get you for over the limit charges, which can be anywhere from 25 - 60 dollars per occurrance..same with late payment fees, BE CAREFUL!!!!!!!!!!!!!!

Answer 4

Here's an idea, but you actually have to do it to make it work: For every $10 you charge, deposit $5 into your savings account. Say you buy a skirt for $50. That same day or the next, deposit $25 into your savings. If you have a checking account with online access, then transfer the $25 into savings when you get home that evening. (Cash under your mattress also works.) This way you're saving to pay the bill at the end of the month. And spending $50 is actually "costing" you $75, so you may be less inclined to spend on impulse.

Answer 5

You could shop to your credit limit, but that is really not a good idea. You need to be able to pay the card off because you are paying interest on every purchase you make. Credit should really only be used for emergency situations (i HAVE to have these SHOES! is not an emergency). That's not how we, as Americans, use them, though. We use them like they are money we already have, when in reality, you are just creating DEBT for yourself. You WILL have to pay for this in the future. If you don't already have the money, you will have to find a way to get it. Why not just save up for shopping sprees? For every dollar they make, the average American spends $1.25. Don't spend money you don't have.

Answer 6

I use my credit card as though it was a debit card. Whenever I purchase something on credit I write it into my checkbook as "reserve" and subtract it from the balance. That way, when the bill comes, the money is sitting there waiting. If I don't have the money, I don't use the card. I've never been in credit card trouble yet, and I don't have to pay interest, either.
Rich on Any Income -- can't recommend it enough

Answer 7

My advise to you is: Do not charge more to your credit card than you can pay in one month.
Each time you max out your card the bank will increase your credit limit. Very soon you will be in so deep you will not be able to get out of debt.
Believe me. I know. I have been struggling with credit cards since they were first invented. Many times I got a consolidation loan and each time I still maxed out the cards. Finally I cut them up. After 40 years, I finally got it under control without going bankrupted. Now my limit is $1000. and I never, never max it out. This has made me a much happier individual because I am not stressed out over bills.

Those credit cards makes complusive shopping too easy.

Good Luck!

Answer 8

I had to learn that same lesson myself when I had my first credit card and it's actually really simple. If you don't have the money to cover it and pay it off - don't buy it! I know that thats easier said than done. But it's the truth. If you start buying and thinking .. Oh its just one more shirt, or one more pair of shoes, I'll pay it off next month. It never happens. You end up going over your head and reaching your limit before you could even blink. So if I were you I would buy a few things, pay it off (to avoid the intrest) Then once you pay it off, then buy something else. Just always try to pay it off every month. Don't just pay the minimum payment because thats barely enough to cover the intrest usually. Goodluck!

Answer 9

I never charge anything I can't pay for in full when the bill comes. In your case, pay off the $265.00 (plus any interest if it takes you more than a month to pay) before you charge anything else.

If you love shopping, get a good job so you can afford what you're buying.

Answer 10

Pay the card off in FULL each billing period.
Otherwise you will be hit with all kinds of charges.

If you do keep a balance (bad idea) make sure you pay EVERYTHING on time. A late library fine may just cause your interest rate to go up.

DO NOT go over your limit each month--there will be large fees charged.

Answer 11

I use mine for emergencies only and only charge what I KNOW I can pay off at the end of the month. It helps to establish your credit.