Pclasp (@admin)
6 months ago

First Credit Card

If there is one thing that may predict your future financial responsibility, it might be your very first credit card. You can learn a lot about how you are going to deal with money in the future by thinking about what you do the first time you are given a card to go out and charge. A lot of people get their first card way too early, and they end up overspending and putting dents in their credit at a very young age. This can hinder your financial outlook for a long time to come.

Many college students are targets for companies hoping to give them their first credit card. They don’t care if you have no prior credit, because they are hoping to snag you as a lifelong customer. When you get your first credit card, you may have a higher interest rate, and the limit may be higher than what you can comprehend. If you have a two thousand dollar limit, but really haven’t thought past what happens after you run that limit up, you are heading for disaster.

When you are offered your first credit card, it might not be a bad idea to take the offer, but remember to keep a level head about it. If you haven’t had a lot in your life, it will be very easy to go nuts and charge all sorts of things you have been dreaming of owning. Before you do this, you have to consider your ability to pay it back. The best use for a first credit card it to help you build new credit. Buy something things you know you can pay back relatively easily, and keep the rest of the balance of your first credit card open for emergencies. If you make your payments on time, you are on your way to a life of good and decent credit.

If at any time you find that you are having a difficulty paying off the balance of your first credit card, make sure you get on the phone with them immediately and ask for advice. They don’t want to you to fall behind any more than you do. They may be able to lower you minimum a bit until you can get caught up, but you should know that they may not be able to do anything. Always pay as much as you can afford no matter what you minimum might be. If you just pay the minimum each month, you are never going to get it paid off. Your first credit card should give you a leg up on establishing good credit, though for many people it ends up being a warning for things to come.