Blackhillsams

So you’ve finally got your first credit card or you’re looking to get one. Well, there are a few things that you should know before you start swiping it at your local convenience store. While it’s great to have a card to build credit, you still have to learn how to use it right in order to build your credit the right way.

Only spend what you can afford – A credit card isn’t free money and you have to get this into your head right now. You can’t spend more than what you can afford. What do I mean by this? If you make $500 a month and you can only afford $100 for fun money like CDs, video games, etc, then spend no more than $100! Even if you have to keep a tab on how much you spend, do it. The more organized you are, the better you will be with your spending.

Always pay on time – One of the more important things that you have to remember when you do get your credit card is that you always pay on time. Even if you can’t pay in full, it doesn’t matter; you have to make sure that you pay the minimum. Failing to pay the minimum will put a huge ding on your credit report. This is why it’s important to spend what you can afford because if you start to spend too much, you may find that the minimum may be too much to even afford. Your credit card statement is generally going to come at the same time every month. If you don’t know when this is, you can always call up or check your online account. When you access your online account, it will tell you when your next statement period will start and how much it will be.

Take care of your card – Never let anyone borrow your card and always keep it in your wallet. IF you’re going to shop online, make sure you know who you’re shopping with. If you shop with the wrong people, they can steal more money than you think. Luckily though, you’re only responsible for the first fifty dollars by law. By regardless of this, it’s a pain in the butt to get this situation taken care of. Always know where your credit card is and if you’re not using it, as I already mentioned, have it in your wallet or lock it up at home. You’ll want to lock it up at home just in case of a home invasion or someone stealing it while someone is at your home.

Having your first credit card is great. It’s going to build your credit so that you can get that home mortgage or car loan you want in the future. Without credit, it’s going to be awfully hard to get a loan. Be responsible with your card and don’t let others tell them that credit cards are bad because these are the people who don’t know how to use them.