5 Essential Tips to Successfully Manage Your First Credit Card

5 Essential Tips for Your First Credit Card

Getting your first credit card is a major financial milestone. Your card can be a great tool that ultimately helps you be more successful in managing your money. Or it can ruin your personal finances. It all depends on what you do with it.

1. Pay Your Balance in Full

• You don't have to pay interest if you pay your balance in full. Make sure to pay off your full balance by the designated payment date on your statement to avoid interest costs.

2. Watch Out for Credit Card Interest

• Credit card interest can be really expensive, with an average rate of 21.47%. Avoid carrying a balance to prevent your purchases from becoming more expensive.

3. Make Every Payment on Time

• Make credit card payments on time to avoid serious damage to your credit score. Late payments can drop your score by more than 100 points in some cases.

4. Build Your Credit

• Your credit card can help you build credit by maintaining a low credit utilization ratio and making timely payments.

5. Earn Rewards

• You can earn rewards for everyday spending on your credit card. Research the best credit cards to find one that rewards you for your spending and start earning those rewards.