So, you have finally decided to join the rest of civilization and get your first credit card. Maybe you got one of those pre-approved credit cards in the mail, or you really want to buy something online but need a credit card in order to pay for it, maybe even you just want to bring up your credit score and this seemed like a good way to do it. Whatever we the reasoning is behind you wanting to get your first credit card there are, in fact, some things you might want to look into upon getting one.
There are many benefits to getting a credit card. Most of us have them, but there still are some ithat don’t. Can’t be that hard to own and manage one, right? Well not really if you know what your doing. Let’s take a look at just a few benefits of having a credit card.
- You can buy things from the comfort of your own home, in your pajamas if you wish.
- You can buy things that you really need, in an emergency, if you don’t have the cash.
- You can buy things for your home in bulk.
What Do I Need To Know About Credit Cards?
As stated above there are some fundamental things you need to be aware of when getting a credit card. Believe it or not most people just wing it when they get one, this is why it never ends well for these people, they don’t make themselves aware of even the most basic things you need to learn. They get a credit card and just start spending it right away and they either end up in a truck load of debt, have numerous problems with them and end up closing them. Owning a credit card can be fun, and it can be easy, just follow these steps and you will be good as gold.
1. Interest Rates.
One of the most common things you need to be aware of when getting a credit card is how the interest rates work. The interest rate on a credit card varies from card to card and it is generally charged by the day. It is always best to find out how much interest you’re paying on your card when you get one. This way you can calculate how much you should spend on your card in a day. Think smart.
2. Your Card Can Get Put On Hold.
This is just something to keep in the back of your mind when using your card. Your Card can get out on hold at any time for a number of reasons. One of them being fraud. If you are going to own a credit card this is something that could potentially happen and you need to be aware of this and take the steps so this doesn’t happen. Use common sense in this case.
Now if you go to use your card and find that’s it’s been froze call your company and find out why.
3. Use The Same Address
As tedious as it is, when you have a credit card say with PayPal, you need to make sure you use the same address that’s on the account for your card. It’s the same with any other card. All addresses must match exactly. If they don’t there will be problems when you go to use it. You don’t really want to be searching and searching for the problem only to find you used your street address on one and have our PO box on the other. Just save yourself the time and keep the addresses all the same.
4. Credit Limit.
Often times when you get a credit card it comes with a limit of how much you can spend in a day. Some have a limit of five hundred dollars, some eight hundred, some even have a higher spending limit. So when you apply for yours or get yours make sure you find out how much a day you can spend on said card.
5. Grace Period.
When you get your credit card you also need to be aware of the grace period. The grace period is the time between your billing cycle and when your first payment is due. If you pay all of your balance you can avoid paying interest on your purchases. But the longer you let it go unpaid after that the more interest you will have to pay. Again think smart.
In closing I hope that these tips helped you in becoming a smarter wiser credit card holder. Having a credit card is a convenient, fun thing that’s ment to be enjoyed. But can only be done when being smart about it. Be a smart credit card holder.