It is important to ensure that you maintain a healthy credit history and use your card wisely to prevent any harm to your credit profile if you are new to credit cards. To ensure that you stay credit-healthy, here are some tips:
- Do pay your bills on time and in full. Every single late, missing, or incomplete payment is reported to the credit bureaus by your credit card provider. This will greatly impact your credit score.
- Stop constantly paying the minimum due payment. The balance will be carried to the next month requiring the charging of interest rates that may later become burdensome.
- Do not buy items you are unable to afford, even though you have easy access to credit.
- Do not spend more than 30 percent of your card’s credit limit. The less you spend, the higher your credit score will be. You can apply for an increase in your credit limit if you spend too much on your credit card.
- Avoid using your credit card at an ATM for cash withdrawal.
- Keep the details of your credit card and the phone number of your card issuer with you in a secure place to report any fraud or abuse of your card immediately.
- Keep the sales slips for your credit card so you can review them against your monthly credit card statement. You should immediately report any inconsistencies or errors since they can be reversed.
- When you first get your credit card, read all the terms and conditions carefully so that you are aware of all the interest charges, fees, and other terms of the agreement on the card.