Guidelines for First Time Credit Card Users

A first credit card can be exciting, tempting and intimidating. If you are getting your first credit card (or you child is getting his/her first credit card), here are some ideas to keep in mind.

1. A credit card is a serious business. The company issuing you a card is lending you money. With that comes the responsibility of making monthly payments.
2. One card is probably enough. Avoid the temptation by only having one card.
3. Keep the credit limit low. Depending on how you are going to use it, $200 or $1000 is high enough for most first-time credit card users.
4. Pay off the entire balance each month to avoid late fees and finance charges. Build a good credit history record.
5. Use the card for emergencies. Start off slowly with this new convenience. Keep using cash and checks for most purchases, especially until you get comfortable with the card.
6. Never let others use your card. You are responsible for all charges on your card. Don't let others borrow it or give out the card number and PIN.
7. Keep track of your use of the card and compare your records to the transactions on your monthly statement. You can identify fraud and unauthorized transactions and stop them early.
8. Keep the card active. Even if you are only using the card for emergencies, use it for small purchases every three to four months just to keep it active. Then be sure to pay off the balance before any finance charges are due.
9. Avoid using the card for cash advances. The interest rate charged for advances is usually high and interest is charged immediately.
10. Create a spending and budget plan. Don't let your credit card payments exceed 20% of your monthly income.
11. If having a credit card turns out to be a problem, get rid of it or stop using it for awhile.

Other Things to Consider

• Keep your credit record strong by making all your payments on time. Those with great credit history get better and lower rates on credit cards, car loans, personal loans and home loans.
• Choose a credit card with a low interest rate for both purchases and cash advances and low or no annual fees. Saugus Federal Credit Union's MasterCard may be the perfect choice for you.
• Investigate the details of the card thoroughly. Be sure to understand all the fees and how interest charges are calculated. Read the fine print always. Sometimes, the credit card offers you will get in the mail advertising a low rate may be hiding other fees that end up costing you more money.

College Bound: Good Advice for Accepting Credit Card Offers

Be very careful when accepting credit card offers in the mail. If you're heading off to college or still in high school, you've probably already seen tons of credit card offers in the mail. Yes they look very attractive, with low rates and high credit limits - they're supposed to. They would love to have you sign on the dotted line and accept one of their credit cards.

The catch is, the more credit cards you have, the more you'll use them, and the bigger the responsibility of making a monthly payment becomes. Don't forget, every time you charge something on a credit card, you're responsible for paying it back with interest. And, if you make late payments, the credit card company will charge you late fees and you will be reported to the credit bureau agencies as delinquent. So, don't get caught in this vicious cycle of not being able to afford to make your monthly payment. Remember, a strong credit history record is just one of the most important jobs you'll have in life.