The Debt Chef - Credit Card

Credit Card

Most of the time, when you get your first credit card, the credit card company will send you materials telling you about all the great things you can do with it, but there's nobody around to advise you on how to use it wisely. Oh sure, there's the fine print about what will happen if your payments are late or if you miss payments, but most people need some sort of guide on the safe way to use credit cards to avoid being in credit card debt.

How to Use Your Credit Card Wisely

Most of us are oh-so young when we get our first credit card, and unfortunately, we have to learn credit card lessons the hard way. Here are some good rules of thumb to follow when you get your first credit card:

When you get your first credit card, shop around to get the one with the lowest APR and no annual fee.
Don't charge more than you can afford to pay in full each month, and don't carry charges over from one month to the next if you can help it.
Don't use it for cash advances (no matter how tempting it may be when you're going on Spring Break)
Think before you spend. Typically, when people buy things using a credit card, they are likely to spend 30% more on the purchase than they would if they were paying with cash, a check or a debit card.
IF you go on a spending spree, don't go over your limit. The credit card companies will allow it to a point, but that's because they can charge you those fun "over-the-limit" fees that add up fast.
If possible, only use your credit card for emergencies. (True emergencies, not needing a new outfit for a fraternity party.)

Follow these rules and you won't have to worry about getting into credit card debt.