Getting your first credit card feels like you’re on cloud nine. You can now buy things that you cannot afford before – and the best part is that you do not need cash; instead, you will just swipe this magic card and voila you got it! But before you get yourself in trouble thinking that it is indeed a magic card and you can do whatever you like or buy whatever you like for that matter, then you should think again, real hard.
Having a credit card can lure you to believing that you can afford things even if you really can’t. This is why you need to have strong discipline and control in terms of spending most especially if it is your first time to have a credit card. Besides knowing how to choose the best credit cards for you, you should also learn how to make the most of your first credit card to prevent you from future trouble.
Here are some tips that you should consider:
- Be aware of your credit limit – there is a set credit limit for any credit cards and you should make sure that you are fully aware of this amount. You should not go beyond the set amount, or else you might find it difficult to pay. You should always be mindful of the limit which will limit yourself from overspending too.
- Pay your bills on time – one of the most important things to remember is to ensure that you will pay your bills on time. Credit card companies charge everything from late payment fees, annual fees, monthly fees and other fees. So make sure that you will pay on time if you do not want your bill to go crazy.
- Pay in full – another thing is that you should try your best to pay in full. You are allowed to pay minimum amount but it will add up some interests so it is best that you pay in full.
- Avail the 0% interest promo – if it is difficult for you to pay in full, you should make sure to buy things under 0% interest promo and can be paid in installment basis. It will be a lot easier to pay that way. You should also check if your card has an on-going promo that you can avail.
- Monitor your account – you should also make sure to monitor your account – see how much you have been spending for the month and stop when you think you’re going above your means. You should also check each charge to ensure that they are legitimate. Protect yourself from fraud. If you’re using your credit card online, then be sure that the site is safe and legitimate. Do not store your credit card details most especially your CVV code or the three digits at the back of your card.
These tips will allow you to enjoy your credit card. Some people take advantage of it to upgrade their lifestyle to the point that they become reckless and forget the consequences. Do not fall into that kind of mistake. Make sure that you will follow the tips that we discussed here to ensure that you will use your credit card wisely and that you will not drown in debt.