When people enter their college years, that is the common time that they apply for their first credit card. It is a great way to build good credit, and to eventually prove that you’re capable of paying off your purchases, which will then help you get great loans for the future. If you’re a college student that wants to learn how to use a credit card properly, continue reading below!
Amounts – This is an obvious thing, but some people still don’t follow it. Don’t spend more than you make. It’s that simple. If you don’t buy everything you “want” on your credit card, and you have the money to pay it off, you’ll be fine. A lot of people rack up their credit cards, and don’t have the money to pay it off.
Pay on time – You also want to make sure you pay your credit card bills on time. If you don’t you may have a fee, and your credit score will drop eventually.
Full amounts – Also, whenever you can pay your credit card bill off in full. You never want to pay the minimum amount because your interest rates eventually will make you end up paying a lot more than you thought. So, always try to pay off your bills in the full amount.
Keep track – You will want to keep track of everything you buy on your credit card. This will help you keep in your budget, and will allow you to see how much you’re really spending. It is very easy to forget the little things that we buy, which add up over time!
Don’t exceed – You also never want to exceed your credit card limit. If you do, you will notice that it won’t work anymore until you pay it off. That may not seem like a big deal, but when you have to pay the over the limit fee, you won’t be happy!
Using a credit card is very easy to do, but it takes a lot of responsibility. If you don’t think you’re ready for one, don’t consider getting one yet. It can be a great thing for people, and it can also cause a lot more damage to others.