The words "credit card" just sound scary. I feel like they are just made to be scary and to be honest, I realized that they aren't actually that bad. I like how easy it is to use them and how it gives my broke bank account a little break till the date I have to pay off my card. I think that credit cards are an important part of your life if you want to be successful while spending money.
It's a great way to test responsibility and to build credit. Yes, building credit actually matters if you ever want to buy literally anything.
So, here's the thing. I am still learning too, but I've come up with some ways to ease the stress of using a credit card.
1. Set your calendar.
Some credit cards make their payments due on specific dates rather than the first of the month. For me, I know my payments are due every 15th of the month so I have my calendar set so I don't forget. I know that life gets super busy and relying on memory is just not something that would be sufficient to do, so set your calendars! It's the best thing you can do.
2. Keep track of payments.
Many banks now have a handy app that you can download onto to your phone. I use my app every time I make a purchase because it also gives me notifications. I love the notifications because it helps to know how much money I've spent. Also, most of the time payments take 2-3 days to post onto my account, so the notification reminds me that I'll be seeing a payment by that amount soon. It helps me stay on limit.
3. Always pay the full amount.
I know it might be tempting to only pay the minimum amount on your card, but trust me when I say paying the full amount will be super worth it. I learned in my econ class that if you keep paying the minimum payment then it will bring interest onto your account and it will be a fast way to be in debt. So yes, $11 might seem a better option when you've spent $300 but it will be worth it. Plus, it really helps to build credit that way.
4. Use your card wisely and plan ahead.
I know this goes without saying, but always use your card for things that you really need. Every card has a limit and you should make sure that you aren't exceeding that limit. I used my credit to buy all my books for college and things that are necessities. It also helps to use it for things like gas and insurance because they are a set amount of payment that won't be changing. You know how much it is and can always plan ahead for them.
5. Don't be afraid to use it!
I think this is something that we all struggle with. Having a credit card is a lot of power so we either get too scared or can't trust ourselves using it. I had this fear but I've learned how to manage my money. I also learned that using a credit card gives you a lot of freedom for the month and it's much better than using a debit card. With a debit card, your money is leaving your account straight away. With a credit card, however, you will always have the same credit limit and that number won't change. It is super simple to get caught up in the fear but I promise that it's not so bad once you get used to it.
- 5 Personal Finance Tips For College Students ›
- 5 Things You Should Know About Credit ›
- 6 Easy Ways To Pay Off Your Credit Card Debt ›
- How to get out of debt ›
- The Danger Of Debit And Credit ›
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