Playing With Fire: Tips You Should Know If You’re A First Time Credit Card Buyer

Owning a credit card is not all fun and games. If you haven’t got the hefty amount of cash to begin with, they are great for making long-term payments on that new car or couch, especially if you take up an interest-free introductory offer. Good for your credit score too, that is if you keep up with the payments. However, if you let your mind slip from your card and forget to make payments on time, you can incur a series of problems. These are the tips you need to know to avoid the pitfalls of owning a credit card.

What does the information on the card mean?

As we all know, credit card jargon is confusing, to say the least. Using an online credit card validator will help to decipher and explain any information which confuses you. If you suspect your credit card is invalid, using a validator will also make any issues known to you. 

Keep on top of your credit score

If you fail to make payments on time and miss the monthly deadline on your statement, it means incurring a late charge, resulting in your credit score getting damaged. If this continues, your credit score gradually worsens. A bad credit score may not sound like anything to worry over, but it has a detrimental affect on any future credit applications, especially buying your first house.

Missed payments will bring unexpected charges 

It is imperative that you keep up with any payments on your card to avoid burdensome interest charges. Make a to-do list or set a reminder on your phone so that you don’t forget. Paying your bills earlier is the smartest option and also increases your credit score, so figuratively, you’re killing two birds with one stone.

Be aware of identity theft

If you are unaware of what exactly ‘identity theft’ means, it is when a criminal steals your identity to apply for credit and use it for transactions. Then, they leave you a gruesome bill to pay for it all. To prevent this, make sure any old letters and bank statements are shredded instead of just been thrown into the rubbish bag. Also, be extremely careful about who you share your details with. For a full guide on this matter, here are the easiest ways to protect your credit card. This stems from never sharing your card information on social media to blanking the signature.

High interest for first-time buyers

For first-time borrowers, credit card issuers may increase the interest rates. Alongside this they also lower your credit limit which means you have a capped amount to spend. If you exceed this limit, as well as missing any payments, you could incur some nasty penalties for doing so. Therefore, it is crucial to be aware of and keep an eye on high interest and low credit limits.

After reading these tips, you will at least take more precautionary measures with your credit card and avoid any mishaps in the future.