Sound Advice For First Time Credit Card Users

If you are just entering the world of credit cards, there is important information you will need to know in order to manage your credit and your finances effectively. Establishing good habits and a good credit history now is the foundation for a solid financial future. Applying for a credit card in your own name can help you establish a sound credit history and will be a valuable asset in applying for a loan for a home, new car, or getting a new job or apartment. In addition, there is no safer way to make purchases online or over the phone than with a credit card.

Along with the benefits of having credit cards, comes added responsibility. If you misuse your credit cards or fail to take responsibility for your spending habits, you could end up in serious financial trouble. Learning how to choose the credit card that is right for you is your first step. There are numerous credit card offers from which to choose, and it can be confusing to know which is the best one for you. Do not choose a credit card simply because of a low introductory rate or generous rewards. A low introductory rate will increase sharply when the introductory period is over, and many times these types of cards have annual fees and additional costs that are not made clear in the initial offer.

Know the terms of your contract with the credit card company. Interest rates and late fees can cause your balance to rise considerably and making the minimum payments will not help you pay off your credit card debt. If you make a lot of purchases with your credit card, it will be necessary for you to pay your entire balance each month if you want to avoid additional fees. Some credit cards raise your interest rate if your balance exceeds a certain amount, and will charge you numerous late fees and other miscellaneous charges if you exceed your credit limit, even if the reason you are over your limit is due to fees and penalties.

You should know exactly when you will be billed each month and prepare to send your payment in several days before the due date. Late payments will result in additional fees and could reflect badly on your credit report. Even if you plan to make your payment online, plan to do so at least 5 business days before your bill is due to avoid any possibility of late payments. It is very tempting to use your credit card for cash advances. You should avoid cash advances except in the case of emergency. Cash advances generally come with a higher interest rate than regular purchases and you will be charged an additional fee for each cash advance. Even if your interest rate is relatively low, the rate you are charged for amounts resulting from cash advances can be significantly higher.

Be very careful about how and when you use your credit cards. Never loan your credit card to friends and make sure you protect your card at all times. Identity theft and credit card fraud are major problems. You will need to take the appropriate safety precautions to avoid either of these situations. When your monthly statement arrives, make sure you have kept all of your receipts and check your receipts against your bill. If you find any errors, report them immediately to your credit card company. You can learn to manage your credit wisely by practicing good credit habits now. Credit cards are almost a necessity in our society, but in obtaining credit you must learn good spending habits and make smart financial decisions.

This article has been provided courtesy of Creditor Web. Creditor Web offers great credit card articles available for reprint and other tools to help you search and compare credit card offers

---

Trying to Land a Job? Poor Credit Scores May Hurt Your Chances

Many employers are now looking at an applicant's credit report... Read More

Various Types of Credit Cards - Part 2

Several different types of credit cards offer several different options,... Read More

Your Consumer Rights

If you have ever fallen behind on your debts you... Read More

Opting For A Credit Card? Check Out Certain Terms

You've just received a "pre-approved" credit card offer in your... Read More

Credit Card Is Adding The Silver Lining To Your Pocket

In the new millennium plastic money or credit cards has... Read More

Building Your Credit History

Today, credit is an indispensable part of our lives. In... Read More

Finance - Money, Money

Finance is a big word for some of us. It's... Read More

Maximizing Credit Card Rewards

In their quest to get you to sign up for... Read More

How To Eliminate Credit Card Debt

There is almost nothing more troublesome than having too much... Read More

Dont Fall for Credit Repair Scams

We've all seen the ads on television or in magazines,... Read More

4 Steps to Creating Good Credit

As a consumer you've learned the importance of establishing a... Read More

Credit Worthiness

Credit Worthiness is an important business and personal asset each... Read More

Credit Cards - A Blessing or a Curse?

Owning a credit card can be quite an advantage. Whether... Read More

How Do I Establish A Good Line of Credit?

A line of credit, roughly defined, is the amount of... Read More

Commercial Collections: Business Finance Booster Shot

Commercial collections: fixture of the new B2B cultureIf you're in... Read More

The Art of Stoozing to Make Money from Credit Cards

Make Money from StoozingStoozing, this is a sophisticated method of... Read More

Four Tips How Homeowners Can Rebuild Their Life After a Foreclosure

Let's face it, if you are facing the possibilities of... Read More

Why Your Credit Score is Important

Your credit score can either haunt you or reward you.... Read More

Learn The Truth About Identity Theft

Identity theft is the fastest growing crime in America, according... Read More

Make Sure Your Credit Report Is Correct to Improve Your Interest Rates And Lower Insurance Premiums

Did you know that you could make sure to get... Read More

What Are The Most Common Credit Card Mistakes?

Now in a world with so many easy to get... Read More

0% Credit Cards

These days, credit cards in the UK are competing with... Read More

Manage Your Credit Wisely

Getting your first credit card is a big deal and... Read More

How To Get a Low Interest Credit Card

Consumers often have the first credit card that they ever... Read More

What Is A FICO Score?

A credit score is most commonly known as a FICO... Read More

Ways to Look Good without Selling Your Soul to the Credit Card Sharks

1. Buy clothes at thrift stores. BEFORE you buy them,... Read More

Identity Theft : They Got Him

His hard earned money? Gone. Creditors on his back everyday.... Read More

It Is In Your Best Interest To Do The Math On Your Credit Card Interest

If you begin foaming at the mouth once a month... Read More

What is a Credit Card?

A credit card allows you to buy things even though... Read More

Credit Reports ? Why Your Credit Score is Important

If you have never heard of a FICO score before,... Read More

Rate Tarts Losing Ability to Cherry Pick

A "rate tart" is someone who switches from one zero... Read More

How You Can Avoid Becoming A Victim Of Identity Theft

To reduce or minimize the risk of becoming a victim... Read More

Annual Credit Report and Free Annual Credit Report

Getting an annual credit report review has been the advice... Read More