Young credit card users – 7 Guidelines to they must surely follow

Michelle Blackmore
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Checking Credit Card

Young credit card users – 7 Guidelines to they must surely follow

It’s really exciting for young adults to sign up for a new credit card. Finally, like others, you too can fulfill your desire by using your own credit card to buy clothes, accessories, food, etc. But, once you accept a credit card, you’re bound to handle it responsibly. Moreover, credit cards can be tough to understand as there are so many things related to it. You just need to follow some basic guidelines while dealing with the new addition in your wallet.

Guidelines for the young credit card users

Here are the 7 guidelines young credit card users need to check out.


1. Find out the right choice

There are so many credit cards with variety of features. But, you need to choose the right card which will meet your purpose. As you’re a beginner, you need to choose a card with low interest rate and which has no annual fees as well. You can get 0% APR for first 6 months as introductory offer on your first credit card. So, it’s advisable to search online to compare credit cards before applying for one.

2. Make sure you have the basic documents

You need to provide some basic information such as SSN, driver’s license, address, date of birth. So, make sure all the informations are correct, and you can submit them, once the credit card company or bank will ask them for review.

3. Be an authorized user

Try to become an authorized user of your parent’s credit card. It may help you learn the right ways to use credit cards. Moreover, you can control your spending and keep track of your expenditure.

4. Deal with money responsibly

Before handling  a credit card, you should be responsible towards money first. Always try to create a budget and plan your spending according to it. Try to keep track of your everyday spending. Once you’ll find out the area of your major expenditures, you can cut down the extra expenses and stop blowing your money. Thus, you’ll know how much you need to pay back after using a credit card.

5. Give value to your priorities

Gerri Detweiler, director of consumer education at Credit.com said, “I wouldn’t focus on rewards for your first card, only because it’s so tempting to start using the card for everything and then end up with a balance that you can’t pay off,”. Remember, applying for multiple card can affect your credit score. If one card will serve the purpose, then it is advisable to stick to one credit card at the beginner level. There are many tempting reward credit cards available but they’ll cost you painfully if you’re unable to pay back the bills on time.You know your financial situation better than others. If you’re confident enough that you can pay back the bills every month, then you can go for multiple credit cards.

6. Check your account on a regular basis

Try to deal with cards responsibly to minimize risk. You’ll get sms alerts every time the card is used. So, try to check every notifications. If you’ve less time to check all the notification then, try to check your account regularly. This simple task will save you from credit card scams. If you’re too lazy to handle your credit card responsibly, then your account may get hacked. Credit card fraudulent activities are very active these days, So, be very careful while using your credit card.

7. Pay the bills on time

Try to pay credit card bills every month. Thus you can reduce the chances of falling into credit card debt trap. And it is also good to practice from the initial stage to avoid financial disaster in future. Its a simple math to understand. If you’ve outstanding balance, then simply say ‘no’ to new transactions. Remember, making minimum payments is not a solution. Every new transaction will accrue interest. So, it is advisable to pay off the bill on time to build a good financial graph.

Do’s and don’ts

Once you start to use credit card responsibly at the initial stage, you’ll surely get the result in future. Proper usage of credit card will help you build a good credit score. Having good credit score will help you in many fields such as you can get good job, lender will approve your application for loan and so on. But there are some basic mistakes that young credit card users often do. Take a look on these dos and don’ts for to avoid same mistakes.

Dos

  1. Do learn the credit card terms and conditions. Know how they will affect your finance.

  2. Do research well to find out right credit card for you. Options are many such as low interest credit card, low credit limit, no annual fees, etc. Grab the best suitable option for your need.

  3. Do check your every statement sent by the credit card company.

Don’ts

  1. Don’t skip payment. And late payments will also harm your financial health.

  2. Don’t use your credit card for extravagance. Try to live within your means. It’s good to enjoy a lavish life but the bill will cost you dearly.

  3. Don’t allow others to use your credit card. The credit card company will never take it as excuse.

Conclusion

Online credit card shopping process is fast. But remember, many fake websites are there to mislead you. So,you need to clarify properly while applying for credit card online. Check if the website is secure and use SSL encryption system. Don’t disclose your personal information unless you’re not sure about the website’s authentication. Moreover, be sure about your income level while shopping for credit card.

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