Credit card tips for first timers

amother

Tue, Jun 16 2020, 4:10 pm

I recently got a new credit card. It’s a secured credit card with a small limit because my credit is terrible, but I would love some tips on how to use it responsibly Smile

this is my very first credit card ever. No one in my family has one so the only people I have to ask are you ladies and google Smile

teachkids

Tue, Jun 16 2020, 4:14 pm

Don’t use it to buy things you can’t afford.
Pay it off fully every bill. My credit card had an option to autopay half of it in the middle of the month between being done and due.

baby12x

Tue, Jun 16 2020, 4:25 pm

Pay the entire bill every month.
NOT the minimum or suggested payment.

When you go to pay, it doesn't necessarily pick the entire amount so make sure you are paying the entire amount.

You can pay your bill throughout the month- don't wait until the last minute

amother

Seagreen

Tue, Jun 16 2020, 4:46 pm

Buy only what you can afford.
Pay in full, on time, every month.
Auto pay can help you keep from missing a deadline.
Once you have a good credit history, get a card that gives cash back.

Einikel

Tue, Jun 16 2020, 5:17 pm

Amarante wrote:

As others have posted but I will add to never pay the bill at a restaurant and take cash from your friends.

If you can pay your balance at the end of the month why not?

Amarante

Tue, Jun 16 2020, 5:46 pm

Einikel wrote:

If you can pay your balance at the end of the month why not?

Because you spend the cash and then are surprised by the bill.

It’s just a psychological trap you can fall into but obviously if you pay it off at the end of the month, it doesn’t matter but the reality is that people forget that they charged a big restaurant bill And then also use the cash they got from their friends during the month.

simcha2

Tue, Jun 16 2020, 5:52 pm

Try and keep your balance at 20% or less than your credit limit. Having a low debt to credit ratio is good for your credit score - which I assume you are trying to build.

forgetit

Tue, Jun 16 2020, 5:55 pm

You'll be getting lots of tips on how to use it responsibly, but I want you to know that there are many advantages as well. You'll also want to know when to utilize which cards to your benefit.
nerdwallet.com is a favorite resource of mine, as well as scorecredit.com They'll both give you easy reads, but tons of info.

shanie5

Tue, Jun 16 2020, 10:25 pm

Whenever I swipe my cc, I deduct the amount in my checkbook. So I dont "see" it in my balance anymore. When the bill comes in, I compare it to the deductions I already made-to make sure I didn't miss any. And then it doesn't hurt to pay the it's already deducted from my account. And I dont overspend this way. If the $ is not in my account, I dont swipe my card.

amother

Ruby

Tue, Jun 16 2020, 10:54 pm

simcha2 wrote:

Try and keep your balance at 20% or less than your credit limit. Having a low debt to credit ratio is good for your credit score - which I assume you are trying to build.

Some think that it’s good to leave a low balance like 20% in order to build your credit. I thought so also. I looked into it because I read somewhere that it’s better to pay it in full and I found out that you don’t need to keep a balance.

amother

Coffee

Tue, Jun 16 2020, 11:38 pm

amother [ Ruby ] wrote:

Definitely don’t keep a balance, ALWAYS pay it in full. She meant don’t charge more than 20% of available credit.

amother

White

Tue, Jun 16 2020, 11:46 pm

You charge, you pay. We pay off the credit card every few days to keep our checking account balanced with what we’re spending. That way we don’t spend more than what we have in the account

amother

Navy

Wed, Jun 17 2020, 1:08 am

amother [ OP ] wrote:

I recently got a new credit card. It’s a secured credit card with a small limit because my credit is terrible, but I would love some tips on how to use it responsibly Smile

this is my very first credit card ever. No one in my family has one so the only people I have to ask are you ladies and google Smile

Is your objective to build your credit or spend responsibly?
If it’s the former-Credit utilization is the bottom line which affects your Credit growth.
Best bet is to use minimal of your allowance-smartest and most responsible way to do so is setting up a auto payment for a very small recurrent expense such As Netflix payment (approx 10$) monthly) and set up monthly payments via your checking account to cover what you spend. That way you can build your credit effectively.

HeartyAppetite

Wed, Jun 17 2020, 1:21 am

Pay off the credit card each weekZ It keeps you more accountable, and at the end of the month you don’t have this big bill to pay.

Teomima

Wed, Jun 17 2020, 2:17 am

amother [ Navy ] wrote:

Likewise, if your objective is the latter, get rid of the credit card and get a debit card instead.

amother

Seagreen

Wed, Jun 17 2020, 6:39 am

Teomima wrote:

Likewise, if your objective is the latter, get rid of the credit card and get a debit card instead.

Or not. I appreciate the cash-back rewards. People who travel (and would have done so anyway) get even better deals from points. I don't understand why people buy more than they can afford with a credit card. If you're able to resist the urge, go ahead and use one.