Tips and Tricks for First-time Credit Card Holders

Jan 10, 2023

Each year, new credit card users remove sticker from their cards to begin learning more about credit. Unfortunately, many significant portions of these new cardholders may misuse their cards, resulting in credit harm and debt. If you're unfamiliar with credit cards, you might be pleasantly surprised to discover that the minimum age to open your first card is 18 years old, at which point you can actually begin building credit. 

As you might be a first-time credit card holder, I will be telling you some points that will help you to navigate, and these are credit card tips for beginners. Cards may be interesting. They may also be quite practical. You can purchase something you desire anytime and at any moment, whether you have the money to do so anywhere and at any moment. There are a lots of benefits when it comes to holding a credit card that you might don't know, like using credit card you can actually buy a condo for sale in the Philippines. The first credit can either lead to a mound of debt that you fight to pay off for years, or it can be the first step toward having a solid financial future and a high credit score. Here are the 7 credit card tips and tricks to help you make the right decisions and use your first credit card.

1. Create a Budget

One of the credit card tips for beginners in the Philippines is that although using a credit or debit card is a simple way to make transactions and accrue rewards, you shouldn't use it to make unaffordable purchases. You may avoid debt by having a realistic sense of how much you can purchase and pay off by the end of each month. Try creating a budget using the 50/30/20 rule, which recommends allocating 50% of your gross income to essentials like housing and food, 30% or less to wants but no needs, and 20% or more to savings and debt repayment. This will assist in keeping your credit card usage in accordance with your salary and other priorities for saving and spending.

2. Create a Purchases Record.

Another essential credit card tip for beginners is to be diligent about monitoring your transactions throughout the month, perhaps with the use of the mobile app or website for your credit card. Avoid using the card once you've reached your monthly spending cap until the balance is paid in full. This level of self-discipline maintains you out of debt and improves your credit score.

3. Pay all of your bills on time, every time.

One of the crucial credit card tips and tricks you should learn by heart is you can pay off your credit card balance each month in full if you simply charge what you are able to afford, and you should do this without a doubt. However, even if you manage to pay less than your entire total in one month, make sure to pay at least the minimum amount due before (not on) the due date. However, this does not mean that new credit card users need to be always worried about just being one or two days late. There will be late fines or, with some cards, an increase in your APR if you are a few days overdue. Your credit won't be harmed, though. However, if you are 30 days or more overdue, the late payment turns into a delinquency, which is shown on your credit history.

4. Understand how much to charge and what to avoid. 

Every difficulty appears to be a nail when all you've got is a hammer, according to an old proverb. Many people who use credit cards for the first time believe that they are a universally applicable answer to all financial issues. Warning: They are not. Another important credit card tip for beginners Philippines is that some things should never, ever be placed on your credit. For instance, using your credit card to incur debt that will take some time to pay off is not a good idea; loans are meant for this purpose. Before charging any items that have a card processing fee, such as rent, house payments, or utility bills, take a second to consider your options.

5. Examine your statement frequently.

 Your credit card company will give you a statement every month that lists all of your purchases from the previous payment cycle. Even if you have planned your monthly payment, it is still vital to read your billing statement. Reviewing your statement will help you find any mistakes or unlawful charges. If you notice either of these, notify your credit card company right away so that it may be resolved.

6. Redeem your Credit Rewards

Make sure you comprehend the rewards program if you have picked a cashback reward for your first credit card. Spend in the areas that reward you the most, like restaurants or gas, to get the most cash back or points. Don't let your awards sit around unused after that. You can exchange points for cashback rewards, a cheque to your savings account, travel, lodging, gift cards, and more based on your credit card.

7. Never be reluctant to seek assistance.

Many new users of credit cards make the error of keeping their troubles to themselves. Although credit card agreements are chock-full of terms, conditions, and fine language, don't take them for granted. Call your credit card provider and request assistance if you are aware that you will not be able to pay your bill. Your best interests and the interests of the issuer coincide when you pay off your credit card balances. The best course of action is to contact your provider before you slip behind since they might be able to offer you an extended or payment plan that would prevent late fees and excessive interest. Working with your provider might help you avoid having your account go past due and hurting your credit.

First-time users of credit cards may find it difficult to learn the ins & outs of credit, but it's far from impossible. Anyone can go from a credit novice to a credit card expert with only a small bit of understanding, and you'll be well along the route to living a life of excellent credit. If you can make a commitment to purchasing only what you are able to afford to effectively pay off in full every month, paying for items with a credit or debit card can offer several benefits. In reality, a lot of the benefits that credit cards offer might help you save money over time. Using Credit cards, you can already buy your own house or any condo for sale in the Philippines. Always keep in mind that establishing credit takes time. It requires years to establish a credit history deserving of a good credit score, so you won't have good credit immediately. However, it may be worthwhile when you eventually benefit from speedy approvals and inexpensive interest rates on credit cards and loans.

For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.    

Other blog

Try our loan calculator and find your future home!