If youâ€™ve just received your first student credit card and it is your first ever credit card, you may be unaware of how to use it.Â Using a credit card needs to be used responsibly, wisely and very carefully.Â If youâ€™re unsure of how to avoid going into debt and how to use it responsibly, continue to read below.Â Listed below are tips for first time credit card users.
Find out your credit limit â€“ The first thing youâ€™re going to want to do is find out your credit limit.Â This means how much is the credit card company allowing you to borrow each time?Â Once you find out that answer always keep it in the back of your head.
Spending â€“ As always, never spend more than you make.Â Limit your spending and if at all possible use a credit just for emergencies.Â Unless you can handle paying each month and youâ€™re responsible use is when you please.Â Although, for beginners, make a few small purchases to realize how the process works.
Reality â€“ Also, you will need to keep reality in mind at all times.Â A credit card is not free money what so ever.Â You will have to pay the money back eventually so do not spend over your head.
Pay on time â€“ You always want to make sure you pay your bills on time.Â This means never pay late and even pay ahead of time to make sure the transaction goes through properly.Â Never, ever pay your bill late.
Pay in full â€“ Always pay your bills in full.Â If youâ€™re a student who is using your first credit card, you probably have a high interest rate.Â Interest rates charge you even more if you donâ€™t pay in full.Â Whatever you donâ€™t pay in full, the more youâ€™re going to have to pay the next month.
It is very important to use a credit card wisely.Â Credit cards are often used for convenience issues, to build a good credit for the future and to learn responsibility.Â They are great to have but it is always important to use them correctly.