How to succeed with your first credit card

How to succeed with your first credit card is an important first step in building credit, buying a home and building generational wealth. Credit scores and your credit history play an important role in our lives. However, below I will share the top 6 tips on how to succeed with your first credit card. I wish this information was given to me when I received my first credit card.

Payment history

This number should always show 100%. Anything below 100% = you are late on your payments and a risk to creditors. The top tip on how to succeed with your first credit card is to always make your payments on time. Avoid blowing it with your first credit card, make all of your payments on time. Setup automatic payments to avoid missing a payment.

Credit card utilization

Keep this number as low as possible and at the very least below 30%. However, the 30% rule is only a benchmark. We always recommend staying at or below 10% at all times. Furthermore, to avoid paying interest don‘t carry a balance, EVER! Maximize bonus points and cash back rewards by paying your entire balance each month.

Only spend what you have

Credit is not cash. Especially cash you do not have and cant obtain quickly. Be mindful of only spending what you have and what you are able to pay off immediately. New credit card users sometimes forget this and go on a spending spree.

Substitute credit for recurring cash purchases

I tell many of my clients to use their credit card to pay for things they would typically pay with cash or their debit card. But immediately pay the credit card. You don‘t have to wait for the credit card bill to pay it. Pay it early and often to avoid missing any payments.

What is your credit score?

Your credit score is a number between 300-850 that depicts your credit worthiness. Scores are broken down into grades. 300-579 = very poor, 580-669 = fair, 670-739 = good, 740-799 = very good, 800-850 = exceptional. Learn how to succeed with your first credit card and your credit score and history will be exceptional.

Monitor your accounts

Keep an eye on your purchases. Monitor your activity. Set spending limits and only spend what you have.

Now you know the 6 tips on how to succeed with your first credit card. To continue the journey and join the Budget Build Buy tribe click here.