Now that you have that credit card, you’ll need to make sure you know how to use it. Learning the mechanics of a credit card when you’re just starting out will help to ensure that you are able to avoid making the credit mistakes that all too many do in the beginning.
Interest Rates
Naturally, the most basic thing to understand about a credit card is the interest rate. Unless it is an essential purchase, something you simply can’t do without, like an automotive repair when public transportation is out of the question, you shouldn’t buy something that you will have to carry a balance on. Once you start to carry a balance, you’ll be paying above and beyond the purchase price in interest rates. It is a better economic choice to save for what you want.
Monitor Statements
Part of keeping your credit healthy is making sure to go over your monthly statements carefully to make sure that there are no mistakes on the charges, that all purchases are yours. You should also check your overall credit report periodically. There are several legitimate online sources from which you are able to get a copy of your credit report. If you do discover an error or a charge that is not yours, you will have to dispute it.
Correct Statement Errors
If there is an error on your credit card statment, you’ll need to contact your credit card company. Usually, the number is right on the back of the card. Have all documentation you have available, paper and a pen when you sit down to make the call. Make a note of the name of the person you speak with and be polite. Your credit card company may request that you complete the process in writing, and some will send specific forms for this purpose. They are obligated to respond to you within 30 days concerning the matter.
