Credit Card
Img : financebuddha

Being new to professional life calls for financial freedom where you can spend as per your own wish. Among the important things which one own after entering into professional life is a credit card. A credit card helps in taking care of your expenses when you are left with little cash at the end of the month.

But then, the usage of it has its own pros and cons which sometimes may put its holder in a stressful situation. So if you are new to the credit card world, scroll down and find some simple tips to manage your First Credit Card:

Research: Find the best Credit Card

Everyone wants to enjoy credit card benefit, but before opting for any credit card it is mandatory to do proper research on this. Today there are many credit card available in the market which comes with attractive offers and facilities and goes well with your lifestyle. For instance, if your work involves frequent traveling, then you can opt for a card that offers good discounts on ticket bookings, etc. On the other hand, if you are a shopaholic, then you can opt for cards that offer discounts on shopping, eating, etc.

Also, there are two types of credit card present in the market. One is a reward card and another is cash back card. A rewards card is one that offers rewards on your purchases like travel, shopping, dining, etc. A cash back card is one that offers flat cash back on your every purchase. So, as a first timer, you can opt any one of these, but carefully.

Awareness: Take Care of Credit History

Your credit history is very important when it comes to taking a loan. So it’s better to spend wisely through credit card so as to maintain a good credit score. Your credit history comprises of credit mix (10%), new credit (10%), credit history (15%), credit utilisation (30%) and payment history (35%). So, don’t take credit cards for granted.

Spend Wisely

As warned above, before making any spending through credit card, make a smart decision that whether you will be able to pay it later or not. In order to woo customers, credit card companies offer upper limit transactions. Due to this, most of the first time credit card users fall into the trap of their own spending habits. It’s better to make a proper document on what you need to pay with credit card and what not. This will help you in saving yourself from spending an unnecessary amount.

Credit card Spending Habit

Last but not the least, follow these below-given credit card spending habits and live a stress- free life:

  • Pay your credit card bills on time and that too full amount and not the minimum payable amount. You can also set up an automatic payment mode.
  • Try and spend only 30% of the credit limit on the card. This maintains your credit history and the score as the credit utilisation ratio remains low.
  • Don’t apply for credit cards frequently. It lowers your credit score. Keep a tab of approximately two-three months if applying for a new card.

 

 

Nikita S Gupta
Nikita S Gupta is a media professional with over 10 years of work experience. Her educational background in Journalism and mass communication has given her a broad base to write on variety of topics. In the past, she has worked with media houses like Zee News and India TV. She specializes in news writing, features, lifestyle, home décor and celebrity articles. When not writing, she enjoys spending time with her family. She loves to travel and explore new places.