Getting your credit card for the first time can be very dangerous if you don’t know how to use them. It’s important that you learn how a credit card functions and what you can do to avoid possible situations that you come across. Today, I’m going to show you how you can get into trouble with your credit card and how you can prevent these situations.
Spending over your head – When you get your credit card for the first time, the first thing students generally do is spend over their head. Instead of treating the card like money, they tend to treat the card like it’s a piece of plastic with no value. It’s important that you watch what you spend your money on. A great way to keep track of your expenses is by either writing down what you buy on a piece of paper or on the computer or simply logging into your credit card account each week just to make sure you can pay off your bill in time in full. Remember, if you pay your bill off in full, you can avoid the interest rate charges.
Not paying in full –This is the thing that I never get when people generally get a credit card. I’m not sure if you know by now but if you don’t pay your card off in full each month, you’re going to be charged an interest rate or aka APR. Make sure that when you pay off your bill is that you pay it off in full. If you can’t accomplish this task, you will soon find out that the bill will just get bigger and bigger. This is because that most people have the mindset that they will pay it off next time and they’ll keep thinking the same thing while paying the monthly minimum. This can really hurt you when it comes to cards.
Not paying, period – This is the dumbest thing you can do when it comes to your student credit card. Make sure that when you get your credit card bill, you pay the minimum amount. Even if you have a bill of ten thousand dollars, you minimum payment isn’t going to be that much. If you don’t pay off your bill at all, you’re really going to start hurting your credit card score. This isn’t something you want to happen. With a bad credit score, you’re going to find that you won’t be approved for car loans, mortgages, and anything else loan related.
Getting into trouble with a credit card can happen quickly if you don’t pay attention. When it comes to spending your card, make sure that you just use your head and don’t spend what you can’t afford. If you can follow these golden rules, you shouldn’t have a problem with your credit future.