Getting a Credit Card

Published by dothy under Money October 12, 2011

I have a friend who haven’t used any credit card before but recently, she has been contemplating whether to get one or not. Knowing about credit cards and what it can do with one’s finances, she is thinking to get one with a small credit limit, with many perks and or course, an Instant Approval Credit Card, which doesn’t need much requirements.

She asked for some advice about it as well as asked me some questions on what I have learned from using credit cards. I told her the following based from experience:

Never buy something more that what you earn. I am guilty of this before, especially when I was just a newbie in using cards. I bought more that what I used to earn so in the end, I wasn’t able to pay my bill for the month and ended up paying just the interest. I learned that even if you have a credit card, you shouldn’t over spend.
Think of the card as just a replacement for your money. Instead of withdrawing and bringing much money with you, use the credit card.
Opt for a full payment instead of having an installment plan. This way, you won’t have any debt to think about next month, but getting an installment plan with zero interest is fine too.
Use a card only for emergencies, if possible.
Maintain only one card.

I still over spend sometimes so this advice is the one I must work on myself.