Tips for Those Who Will Be Using Their First Credit Card

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For some, getting their very own credit card indicates that they are finally in a decent financial position. For others, it is a sign that they have finally reached adulthood and can take care of their finances without having to rely on others.

Whatever the case may be, you cannot help but expect that some individuals will certainly have struggles and will look for answers to various questions before using their credit card. Everything may appear simple on the surface, but once you delve a bit deeper, the reality sets in, making you look at it differently.

If you happen to be in a similar situation, this article should be a great reference as it covers all the basics and then some.

Be Smart

First and foremost, you need to be smart about it. Think before you act. After all, this is your money we are talking about, and everybody wants only the best so as not to ruin their financial situation, correct?

Having no experience is difficult, so it is always good to look for some extra knowledge. Read about these four smart ways to use your credit card on the Westpac’s website.

Setting a Budget

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Using a credit card certainly makes everything easier. You can make a purchase with just a few clicks and impulsive tendencies could lead to quite a disaster. However, if you were to be smart and set yourself a budget, you will not have problems keeping track of your purchases.

One thing to note, though, is that if you do find yourself struggling with this, stick to using the cash more often. Holding money in your hand makes parting with it a bit more difficult.

Automatic Payments

If you are in a decent spot financially, you can set most of your payments in a way that everything is taken care of automatically. This is especially useful for bills since doing everything manually can be a bit of a pain, even more so when you have many different bills to pay each month.

Credit Card Fraud

Credit card fraud is quite common and you need to be wary of it. Do not freely use public Wi-Fi hotspots, act carefully when traveling abroad, and certainly do not give out the information of a credit card to anyone. You should be the only person who knows the details.

A quite common method of fraud is someone calling you and telling you that they are from the credit card company, asking for the information. This should never happen. Nobody would call you and ask for such a thing.

Bills on Time

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Always pay your credit card bills on time. If you are late, you will have to deal with fines, penalties, and so on. Moreover, not keeping this in check will greatly reduce the overall score of your credit, and it will be difficult to get a loan or a better credit card in the future. It is always better to do this even if you might be a bit short on money for the upcoming month rather than having to pay extra in the future.

Make Use of Perks and Rewards

You could find some credit card companies that give a card with various perks and rewards even to first-timers. Even if they may appear abysmal, you could still make some use of them, especially if you are looking to add a little bit extra to your income.

Look for the Best Option

As you can guess, there are multiple companies who would be willing to give you a credit card for the first time. Try to spend some time researching and looking for the best possible option. While the differences may not look significant at first, they do end up mattering since you are going to commit and use a credit card for a very long.

Ask for Some Guidance

If you are still rather worried about this decision, speak about it with someone you know and trust. There ought to be an adult in your life who has had experience with this sort of thing and can help you with any questions you might have as well as reassure you that things are not that complicated in the first place.

Download an App

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These days, most agencies that give out credit cards usually have an app for smartphones and tablets. If you want to keep track of everything as well as get notifications about various deals, upcoming features, and so on, downloading an app should be a no-brainer.

So to sum it all up, even if getting your first credit card can be a bit scary, worrying about it too much is definitely not something worth your efforts. Once you get the hang of it, you should not have any problems whatsoever. And the whole situation should be much easier if you follow the tips mentioned above.