The Top 4 Tips for New Credit Card Users
Are you getting a credit card for the first time? Credit cards are a powerful financial tool that can help you build credit and even mitigate tight economic situations. However, when mishandled, credit cards can also get you into trouble. (Just ask any of the roughly one in three Americans with outstanding credit card debt!) There is no need to be nervous, however. Follow these four tips and you will be in great financial shape for years to come.
- 1. Be Familiar With The Conditions of Your Card. Before even choosing which credit card service you wish to use, you should know the interest rate, annual fees, and payment schedule, for example.
2. Don't be Enticed by Promotional Tricks. Some cards offer 0% interest during the first six months, or similar "perks." Others give you the opportunity to earn rewards points in exchange for spending a certain quantity of money. Unfortunately, many inexperienced users fall victim to these promotions and end up falling into debt because they spent faster than they could realistically repay.
3. Pay In Full and On Time Every Month. This may be easier said than done, but it is the only way to ensure that you do not fall into debt. Remember that paying in full and on time is a process that begins long before the end of the month ‐‐ it is a choice that you make with each and every purchase. Don't spend beyond your means unless it is a legitimate emergency!
4. Don't Go Over Your Limit. Not only will this incur fees, it is also a surefire way of ending up in a situation where you cannot pay off your outstanding debt at the end of the month.
Struggling with credit card debt? Visit Madison Monroe and Associates online today and work with us to create a realistic get-out-of-debt strategy.