Congrats on Getting Your First Credit Card! Now Read This

I wish it could be as easy as telling you, “just say no” to credit cards.  But unfortunately they are a rite of passage and important to building the necessary credit score. 

I remember getting my first credit card.  It was from Discover.  I was in college, and you couldn’t tell me nothing!  I was grown.   Of course, I barely had a stream of income unless you counted my refund checks and work-study job.

And as quickly as I signed the back of the card the beginning of the end began. 

Given I had no credit that translated into “good credit” to the credit agencies.  I think they gave me a credit limit of $1000.  That was a lot of money in 1993!

Of course, I swore I would only use it for essentials.  I don’t even think I told my mother about my shiny new credit card. 

Quickly, essentials became clothes, shopping, and more shopping.  So when an emergency actually did come I had nearly eclipsed my credit limit and had no money for the emergency or to pay the interest-laden bill.

Before I knew it, Discover had shut down my account.  I paid off the account soon after and received the first black mar on my once “perfect” credit report.

So, suffice it to say you should learn from this little ditty and follow some good rules of thumb from Forbes for newly minted credit card users. 

Some good tips include:

• Not using credit cards can be almost as bad as overusing them.
• Consider making a debit card your go-to card.
• Pay everything on time–everything.

Read more about these tips and others.  

The rules have gotten a heck of a lot better as well.  So good luck, and use wisely.

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