A credit card is a convenient addition to your financial picture, but it’s crucial to use one responsibly to protect yourself. If you just got a card for the first time, you might be curious about how to make the most of it. Here’s what you should know to avoid any banking problems in the future.

How to Manage Your New Credit Card

1. Charge Within Reason

Paying with a credit card is easy, but be careful not to treat it as “free” money. Only you know what you have in your banking account and what you can spend comfortably. Avoid spending beyond your means, even if you have a high limit and think that you can pay it off over time. It’s best not to fall into that trap, as you could quickly fall behind and your new credit score could suffer as a result.

2. Pay on Time

Credit card companies don’t typically give breaks to people when they make late payments—even if it’s only by a day. You might even notice that your interest rate increases. That can make it significantly more difficult to use the card comfortably. Avoid this situation by paying it on time and in full each month. You won’t have to worry about late fees, interest hikes, and potential dings to your score.

3. Avoid Debt Accumulation

The problem with credit card debt is that it can take years to pay off. That’s because you don’t only owe what you’ve spent, but also interest that accumulates every month until you’ve paid it down to the last penny. Over time, you could end up spending thousands more than you anticipated. Be honest with yourself about what you can afford so that you don’t end up dipping into your banking and savings accounts to pay off the card.
 

Whether you’re interested in tips and suggestions to make the most of your banking situation or want to obtain an insurance quote, you can trust in Johanna Velazquez, State Farm® Insurance Agent, based in Davenport, FL. Since 2006, she’s played significant roles within the company, and she’s committed to helping you during moments of need. She can help you find the right home insurance plan to secure your property, for example, or the appropriate life insurance policy to ensure your family is protected. Visit her website for information, or call (863) 400-2004.