Tips for First Time Credit Users

Step#1: Be Careful When Choosing a Credit Card

All credit cards do not work for everyone. When credit card shopping, evaluate the APR, and what benefits the card company offers its customers. Also, this will most likely be your first credit card, so treat it like a child. You will need to care for it, don't overfeed it with charges, and don't have so many, that you can't afford to care for them any longer.

Step #2 Know What Kind of Credit Card Suites You

There are many different types of credit cards out there. Know that some credit cards come along with high APR. In addition, if cash back is something for you, then look into getting a card with a slightly higher cash back ratio. Also, read the fine print when looking into credit and be sure you understand the payment policy for your card. Overall, don't set a high credit limit, because it could be too tempting to try to reach.

Step #3 Make Your Payments On Time

Never pay the minimum payment due. As time goes on, your remaining balance will gain a higher interest rate. This will cause the amount of money you owe to increase, even if you are paying it off.

Step #4 Don't Let Debt Sneak Up on You

Before charging something to credit, ask yourself, "Can I afford this?" If you say no, then put it down/ don't charge it! This will take a lot of will power, but lets have faith in ourselves. Try to pay for food and other small purchases with cash. Try to pay close attention to what you charge, because all it takes is one bad decision to ruin your credit score, and even your life.

(Be sure to check your credit score and your credit report.)

Step #5 Don't Fall Into a Bottomless Pit of Debt

Statistically speaking, the average American has $15,000 in credit card debt alone. This does not include student debts, mortgages, car loans, or any other debt that you will acquire in your life. Stop trying to join the growing pit statistics, and show yourself that you can, and will, succeed without racking in more and more unnecessary debt.


(Here is a link to a website where you can read about how much debt the average person has)

Works Cited

"5 Credit Card Tips for College." Discover. N.p., 7 Mar. 2016. Web. 14 Mar.

2016. <https://www.discover.com/credit-cards/resources/for-students/
college-student-credit-cards>.


"5 Key Facts about Credit Cards." Bank of America. N.p., n.d. Web. 14 Mar. 2016.
<https://www.bankofamerica.com/credit-cards/education/
5-facts-about-credit-cards.go>.


"Avoiding Debt: Credit Card Do's and Don'ts." Find Law. N.p., n.d. Web. 14 Mar.
2016. <http://bankruptcy.findlaw.com/debt-relief/
avoiding-debt-credit-card-do-s-and-don-ts.html>.


El Issa, Erin. "2015 American Household Credit Card Debt Study." Nerd Wallet.
N.p., n.d. Web. 14 Mar. 2016. <https://www.nerdwallet.com/blog/
credit-card-data/average-credit-card-debt-household/>.


"Paying High Amount of Interest." Credit Loan. N.p., n.d. Web. 14 Mar. 2016.
<http://www.creditloan.com/blog/
top-3-ways-paying-the-minimum-credit-card-balance-can-hurt-you/>.