New Credit Card Users : Do’s and Don’ts

Great power comes with responsibility and the same goes for when it comes to using your new credit card. If you’re a new credit card user, you must know the power and security that comes along with it. When you use your credit card wisely, you can rest assured that you don’t have to pay extra. Moreover, you don’t have to deal with the complex situations that might come up if you use it recklessly. If you wish to use your credit responsibly, here are a few do’s and don’ts you need to consider.

Do’s

• Pay Bills On-Time – When you pay your bills late, chances are that it will directly impact your credit score. This is why it’s vital to avoid late credit card payments. By paying your bills on-time, you will not only improve your credit score but also open your ways to make new purchases without paying extra on high interest rates.
• Pay Your Monthly Credit Card Bill – It’s definitely a wise idea to clear your monthly credit card bill every month. This is one of the best ways to avoid getting into debt and enjoy low interest rates.
• Use Your Credit Card Wisely – Once you’ve a credit card, it’s your responsibility to use it wisely. Using it unnecessarily can impact your financial status and stability. This is why it’s important to use credit cards wisely and purchase high priority items.
• Review Credit Card Statement Regularly – Reviewing credit card statements is extremely important as it will help you to determine unexpected transactions. If you experience any of the unauthorized transactions, your first step is to contact your credit card issuer right away.

Don’ts

• Never Exceed Your Credit Card Limit – If you want to avoid unnecessary issues, never exceed 30% of your credit card limit. This is one of the best ways to keep your credit card score stable along with keeping your balance low.
• Don’t Spend Extra From What You Can Afford – Spending without thinking can push you in debt along with hurting your credit card score. Keep in mind, when you pay using your credit card, you are taking a loan. This is why you need to manage your funds to avoid ending up in debt.
• Never Share Your Credit Card Number – If you wish to avoid the online scams, make sure you never share your credit card number online. This can lead to identity thefts and phishing scams. Always contact your company if you administer any malicious attack or suspicious attack.
• Don’t Use Credit Card To Withdraw Cash – If you’re a new credit card user, you must avoid withdrawing cash from it. Withdrawing cash can lead to high interest rates and extra expenses.

When you get your hands on the first credit card, you’re making a step towards an excellent credit score. Using it wisely will help you to repay your debts and build a strong foundation of good credit score. If you’re using your credit card recklessly, you can end up being in heavy debt and damaging your credit card score. Always memorize your credit card number rather than writing it to avoid identity thefts and data breaches.