How to use my credit card wisely?

Question

I'm 18, and interested in getting my first credit card. I want to build up my credit which, I don't think will be a problem because I'm really good at paying bills on time. What are some good tips as well as do's and don'ts when I get my first credit card? What should I be aware of? What would be helpful to avoid?

Answer 1

Don't get a credit card that charges fees and don't get a store credit card. You should only charge what you can pay off completely before interest kicks in but if you have a store credit card and are late on a payment you could be paying 30% interest.

Ask for a low limit, one that is only about half your monthly income. Ask the company to not raise you limit unless you authorize it.

DON'T shop online when you've been drinking and always leave your credit card at home if you're going to a bar or a casino.

Always remember that once you get yourself into debt it's very difficult and expensive to get out of it.

Learn as much as you can about credit card fraud to make sure you're never a victim. Sign the back of your card, don't use it any where shady and keep a photocopy of it at home incase it's ever stolen so you can have all the info to cancel it quickly.

Answer 2

Get a debit card instead. It'll do anything a credit card can do except get you in debt..
Don't play the credit card game. They make all the rules and can change the rules in the middle of the game. If you play the credit card game. Sooner or later you will get behind and start losing. Once you start losing at the credit card game. It's hard to get out of the game. High interest rates that they can raise for any reason. Outrageous late fee and over the limit fees. Not to mention Identity theft.

Pay as you go and live on less than you make and you will have money. If you have money you dont need to borrow money. If you dont borrow money you don't need to worship at the alter of the almighty fico score.

Debt free is the way to be!

Answer 3

Be aware that you are much more likely to buy things that you either don't need or can't afford.

If you can't pay the balance off at the end of the month, then you can't afford it. There is no virtue in needlessly paying credit card interest.

if you really want to / have to have it, then use it to buy gasoline and that is it unless you are out of town and in an emergency.

Answer 4

only one card is sufficient. Too many enjoying cards probably will boost your debt fairness ratio in case you carry balances. Get interior the habit of no longer charging greater desirable than 50% of your card decrease and paying it off on time and in finished. sure as quickly as you have began to ascertain this habit, your credit that's very much impacted by potential of your value historic past will paintings favorably whilst ability loan/loan lenders overview your application. in spite of if youre credit interior of reason new, lenders would be greater in all probability to furnish you the published rated. in case your credit is astounding you will delight in decrease than published costs.

Answer 5

.Look for a card that has no Annual fees.
It is also good to get your card through a local Bank.
If there is any problems you will be able to go in and talk to someone.
Never put anything on the card that you will not be able to payoff at the billing cycle.This way you pay No Interest.
When the bill comes in Pay it Immediately.
If you wait it is oh so easy to forget, and be past the due date

Answer 6

Only buy things that you really need. Only use what you can pay off. If you can't, you will find yourself in trouble you dont want.

Answer 7

If you can't pay it off in 2 months, do not buy it. never by because it's "on sale".

Answer 8

A checkbook would be better.