You just finished college. Congratulations! Now, there’s a whole new chapter in your life ahead of you. And it will definitely include at least one credit card. And this is OK, because you need credit cards to build credit. If you get a good credit score, you’ll also be able to get a lower rent, lower rates on your car loan and much more. So here are a few credit card tips that will put you on your way to building that excellent score.
Find out everything there is to know about your credit card
This is the best way to protect yourself from unpleasant surprises. It might take you a few minutes and it might be boring, but you need to read that fine print. Understanding the terms of your credit card is for your own good and will help you avoid costly mistakes.
Create a budget
Overspending is one of the biggest mistakes you can make. If you build a budget, you’ll know exactly how much you can spend, you’ll be able to avoid debt and also save some money.
Track your spending
If you don’t know how much you spend, you won’t be able to stay within your newly created budget. There are numerous apps and free online money-management programs that can help you with this.
Make your monthly payments on time
Late payments can really damage your credit score. That’s why it’s important to set up reminders and make sure that you don’t miss any payment.
Most of major credit card issuers offer ways to set up text or email reminders, and you can also set up notifications with the help of numerous smart-phone apps and free online programs. All you need to do is to go to the bank.
Pay your bills in full
Some people choose to only make the minimum payments each month. But this way you’ll land right in credit card debt. That’s why it’s so important to pay everything you owe in full each month. As a fresh college graduate, you probably also have student loans to worry about. You don’t need to add credit card debt to them.
The bad thing about credit cards is that they allow you to easily spend money that you don’t have. And once that money is gone, it’s gone. That’s why it’s important to start slowly. Get a second credit card only after you’re certain that you mastered the art of using credit cards.
Credit card tips are only good if you commit to living a healthy financial life
If you don’t fully commit to your plan of building your credit score, these six credit card tips won’t do you much good. Be a responsible credit card user, take care not to overspend and you will have that excellent credit score.