Depending on your use of your first credit card, it can give you satisfaction or disenchantment. Improper use of it can stain your credit history for several years, closing the door to other credits, such as mortgage credit. Therefore, before starting to use your first card, we recommend reading this article.
When a financial institution gives you a credit card
It gives you a very particular payment instrument. This card has an automatic credit line that allows you to purchase goods and services. And that loan for consumption can then be canceled by a single payment or in different monthly payments, according to your convenience.
Always remember that buying with a credit card is more expensive than doing cash. Therefore, from your first card, you must handle it very rigorously, avoiding using it for unproductive purchases.
Tips for using your first credit card
If you want to make good use of your first card, and generate a good credit history, follow the instructions below.
- In principle, and while developing expertise, limit the use of your card to only one type of purchase. For example, to the purchase of footwear and clothing or of artifacts and / or telephone services.
- Set as a rule to cancel in your payments more than the minimum amount, before the corresponding deadline. So you can cancel your debt much faster, generating less interest and facilitating the approval of new loans.
- Keep your card balance below 70% of your limit, reserving 30% to attend emergencies. In addition, this helps you not to fall into default, thus creating a good credit history.
- Use an application for your smartphone, or a digital agenda, to assist in the use of your card. Program it to indicate the proximity of the due date of your payment. And there is a strict control of purchases made with the card, including the available balance.
- Use cash advances exclusively in case of emergencies, as this option is very expensive.
- Be careful and careful with your credit card, especially when using it for online purchases.