A credit card is more than just a card. Although it may be useful in emergencies, it also represents the first step towards establishing a good credit record. But it is important to realistically assess your needs and your ability to manage your credit responsibly so that your credit card is a tool for efficient and flexible payment and not a path to debt.
Nancy Marescotti, Director General, Marketing Cards, BMO Bank of Montreal offers the following tips to help you show trial when requesting your first credit card.
Know your limits
A credit card is not a blank check and should not be used as such. The limit applied to your card helps you protect against overspending. If you fear being unable to resist the temptation to splurge, make your limit reduce to a low level, so that you do not spend more than your budget allows you. The cards are not all equal
The awards, features, fee structures and interest rates vary from one card to another. Take time to "shop" and choose a card that fits your personal situation and your needs.
Do not be bamboozled by eye-catching rate welcomed
If you think you can not pay your entire balance, choose a card that offers an annual interest rate low, because your interest rate may significantly affect what you pay. But do not be bamboozled by catchy introductory rate on short-term. Once the period of welcome ended, your interest rate could skyrocket.
Pay your entire balance
Always try to pay your entire balance before the due date of your monthly statement. Otherwise, interest charges will apply. At least, try to pay the minimum amount required each month and, if possible, try to pay a little more, because the faster you pay off your balance and less interest you'll pay.
Build a good credit
Now that you have your card, use it responsibly so as not to tarnish your credit record. A bad credit rating could have negative consequences when you want to get a loan, buying a car or a condo or even get the job you want. Build a good credit record, and protect it by paying your balance or the minimum monthly without delay.
Be a smart borrower
The possibility of obtaining a cash advance on your credit card may be of importance in an emergency, but remember that the interest on that money when you apply the touch. Whenever possible, try to avoid getting cash advances on your credit card.
Protect your identity
Identity theft is when someone steal your personal information, such as your name, your social insurance number or your number of credit cards to commit a fraudulent act.
Protect yourself by protecting your personal information. When you make a purchase online, make sure the website has security features necessary for your personal information from falling into criminal hands. If you give your card number credit to a merchant by telephone, make sure the good reputation of the merchant. Finally, do not lend your credit card to your friends - any misstep could put your credit rating at risk.
"Financial institutions are well equipped to help you make informed decisions and appropriate," said Ms. Marescotti. "Just go to your bank branch nearest you, or visit their website and you will get all the information you need to make such decisions. This open type of situation where we very happy to help you do your homework
Nancy Marescotti, Director General, Marketing Cards, BMO Bank of Montreal offers the following tips to help you show trial when requesting your first credit card.
Know your limits
A credit card is not a blank check and should not be used as such. The limit applied to your card helps you protect against overspending. If you fear being unable to resist the temptation to splurge, make your limit reduce to a low level, so that you do not spend more than your budget allows you. The cards are not all equal
The awards, features, fee structures and interest rates vary from one card to another. Take time to "shop" and choose a card that fits your personal situation and your needs.
Do not be bamboozled by eye-catching rate welcomed
If you think you can not pay your entire balance, choose a card that offers an annual interest rate low, because your interest rate may significantly affect what you pay. But do not be bamboozled by catchy introductory rate on short-term. Once the period of welcome ended, your interest rate could skyrocket.
Pay your entire balance
Always try to pay your entire balance before the due date of your monthly statement. Otherwise, interest charges will apply. At least, try to pay the minimum amount required each month and, if possible, try to pay a little more, because the faster you pay off your balance and less interest you'll pay.
Build a good credit
Now that you have your card, use it responsibly so as not to tarnish your credit record. A bad credit rating could have negative consequences when you want to get a loan, buying a car or a condo or even get the job you want. Build a good credit record, and protect it by paying your balance or the minimum monthly without delay.
Be a smart borrower
The possibility of obtaining a cash advance on your credit card may be of importance in an emergency, but remember that the interest on that money when you apply the touch. Whenever possible, try to avoid getting cash advances on your credit card.
Protect your identity
Identity theft is when someone steal your personal information, such as your name, your social insurance number or your number of credit cards to commit a fraudulent act.
Protect yourself by protecting your personal information. When you make a purchase online, make sure the website has security features necessary for your personal information from falling into criminal hands. If you give your card number credit to a merchant by telephone, make sure the good reputation of the merchant. Finally, do not lend your credit card to your friends - any misstep could put your credit rating at risk.
"Financial institutions are well equipped to help you make informed decisions and appropriate," said Ms. Marescotti. "Just go to your bank branch nearest you, or visit their website and you will get all the information you need to make such decisions. This open type of situation where we very happy to help you do your homework
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