Is using a credit card necessary?
After a college graduation you probably knew things were supposed to be more challenging, than they were before. Becoming an independent person, who solves problems on his own, is a huge step into an adult life. Finding a good well-paid job and renting a place to live – that’s what a lot of people go though in their middle 20s.
Sometimes there are things you don’t have enough money to pay right away, that’s when you start using credit cards. Surprisingly, they are a good way for a healthy financial plan, and if you use a card wisely, it can help you make larger purchases.
However, you’d better read some simple and useful tips before swiping your card here and there:
1. “Get rid” of your old debts
The number of young people, using credit cards has decreased over past few years, BUT the fact, that students start using them more often after actual graduation remains: plastic is used over by 60 percent of them. Besides, graduates think it’s really nice to pay down all of their debts as soon as possible. Would you agree, that paying an interest, which can go pretty high after a while, is just a stupid waste of money? You don’t want that to happen. Moreover, this is a very smart way for holding your credit score healthier.
2. Follow your budget!
To not lose your mind from spending too much in one moment, sticking to a certain budget will be necessary. Nobody guarantees that your job would be permanent forever. Instability at this period of time is usual, so creating a right budget plan will make it easier.
While looking for a full-time job, it’s kind of hard to limit yourself in lots of things, especially when you own a credit card, however try to stay away from overspending. Think two steps ahead: by doing that you won’t have too much debt giving away afterwards.
3. You don’t always need your credit card
Temptation will always follow you everywhere. Unfortunately, not a lot of people can handle not buying stuff with a plastic in their wallets. So leave it at home! Buying an extra pair of shoes or having a drink at Starbucks sometimes isn’t affordable for you, even if they don’t cost a fortune.
4. Build up a good credit history
It doesn’t mean that you have to totally forget about your credit card. A good history of you paying all your debts in time will only make it better. All in all, some day you will need take out a loan for a car or anything like that.
However, think about that kind of expenses, you are sure of paying them all every month. It could be just simple everyday things as food products, insurance or gas. The more often you pay off total amount of these expenses throughout 30 days or so, you won’t have to pay any interest. That would be a great credit history, don’t you think?
5. Be attentive
Sometimes there are great opportunities for your credit card rewards. Just do a little research on that, like ask your bank consultant or use internet. Read all the papers, before signing up for a new credit card: this is really important.
You can always get away finely with using your plastic and build up a nice credit card history for your future loans, that are going to get quite big. All you need to remember is that everything starts with a young age and then it becomes a habit. Have only good ones!