Credit Card Basics For First-Time Credit Card Owners
Better Credit…Better Options
Credit card ownership can bring a feeling of freedom and maturity to a young adult. However, credit cards can easily be abused, and you can quickly find yourself in over your head. There are a few basics that you should know to help you utilize your credit card in the right ways, and use it to improve your credit score.
The way you use your card each day has a impact on your credit score. When you max out your card, or have a high balance on the card, you are seen as a risk to potential lenders and it will negatively impact your credit score. Keep your balance low and try to only use your card if you have to.
Your payment history also affects your credit score. Always pay your payments on time each month. You should definitely pay at least the minimum payment that is due. It’s a wise idea to pay more than the minimum if you have the funds. This will also help your credit score increase.
If you find that you can’t make your payments, don’t wait to call the card issuer. Many times they can help you adjust your payments or give you a lower interest rate. This will keep a negative mark from being put on your credit file.
If you are a new credit card owner and you would like more information on how to use credit to your benefit, give CRE Credit Services a call today. Our team of financial professionals will schedule you for a one-on-one consultation. During this appointment, we will help you understand how your credit score can impact you every day, and simple things you can do to improve your score. We can also answer your questions on every aspect of credit. Call us today and let us get you started on the path to responsible credit card ownership!