How To Use Your First Credit Card Responsibly

Getting your first credit card is a huge deal. It means you're able to build your credit history so you can qualify for things like apartments, home loans, and even new cars. Though it's tempting to use your card to buy whatever you want, you need to be careful and make sure you're using the card responsibly. Luckily, being a responsible credit cardholder is easier than you think. Here are a few things you need to do to make sure you're being responsible from the very beginning.
 

Only Buy What You Can Pay Off

For many first-time cardholders, it’s easy to charge purchase after purchase without paying attention to how much money you’re spending. After all, it’s not coming out of your bank account and you’re not having to hand cash over anytime you buy something. This leads many people to get into serious debt quickly. Instead of charging as much as you want, as often as you want, only buy what you can afford to pay off in full at the end of the month. Treat your credit card like a debit card and avoid spending money that you don’t have.
 

Never Carry a Balance

Credit cards are essentially small, revolving loans. The issuing company lends you the money to make purchases, and as long as you pay the balance off at the end of the month, you won't get charged interest. However, if you carry a balance, even if it's small, you'll owe interest on that amount. Pay the card off in full each month whenever you can. If you end up needing to carry a balance, make a plan to pay more than the minimum payment until the debt is repaid and avoid using the card until the balance is gone. This way, you'll reduce the amount of debt you carry over time.
 

Monitor Your Card’s Activity Each Month

Unfortunately, it’s impossible to keep your credit card number completely secure every day. Thieves have ways of getting access to those numbers and may make charges in your name. The sooner you catch those fraudulent transactions, the better. This means you’ll need to monitor the activity on your card often. Get in the habit of checking your statement online each week. If you notice any charges that you didn’t make or authorize, report them to the credit card company immediately. They’ll be able to remove those charges from your statement and help you secure your information more effectively.

Being a responsible cardholder doesn't have to be difficult. Follow these tips, and you'll be able to avoid many of the pitfalls that get others in trouble right from the start. By using your card responsibly, you'll set yourself up for financial success in the future.