Many people acquire their first credit card as a teenager around the age of 18. This is the time in someone’s life when they begin to work and start developing the credit. A credit card can be a blessing or a total nightmare depending on how you utilize it.
Buying a credit card may seem like free money that is available with the swipe of a card. But you do need to look at the aspect of the bill that will come monthly, and which you need to pay to stay within good territory with your credit card company. That monthly is not just a part of what you spent that month, but all a finance charge. If you have a high interest rate, then you will have a higher bill. Make sure you know your interest rate before you sign a contract for a credit card.
In order to apply for a credit card, you need to fill out a credit card company’s application form and submitting it for review. After that point they will review your information and either approve or deny your application. If you are approved, you will receive a plastic credit card in the mail within 7 – 10 business days. You will need to activate the card before use; usually this is done by calling a number that is in your credit card package. Once it is activated, then you are free to start using your credit card.
Credit cards are a great back up for emergency situations such as unexpected car repairs, emergency bills, and text books. Using a credit card for a fast food purchase isn’t necessarily a smart purchase since you are acquiring interest for every swipe of that card. Instead, consider carrying small cash amounts for these types of purchases, as well as gas, and other daily necessities.
