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Raise your hand if you’ve also had these thoughts when you were young:
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“I can’t wait to finally get a job once I graduate!”
“I am so excited to grow up so I can finally do whatever I want!”
“When I grow up and starts to work, I can buy anything!”
“I want to be an adult soon!”
You are not alone, Besh. Most of us, millennials, have been there, too. We thought of growing up as something like a ‘dream come true’.
Then one day you woke up paying for bills, making your own decisions and more. Welcome to the #Adulting club!
Though this phase in our lives seems to be overwhelming, it is also very exciting. Because finally, you are working and earning your own money, and you are now capable to manage your own expenses. What’s the best part? You are now also capable to buy things for your own, too.
Apparently, this is also the time you’ll get to experience owning your first ever credit card, which is another huge milestone that requires adjustment on how you handle your expenses responsibly.
But don’t fret because credit cards are actually useful on making emergency purchases, earning rewards, and paying for bills or utilities. Here are some useful in tips to guide you in using your first–ever credit card or if you are planning to apply for one:
Manage and be mindful of your credit limit
For first time credit card users, you don’t usually get a high credit limit at first. But later on, when your credit score is good, you could be offered a high credit limit, and sometimes it can be requested to your credit card issuer. You have to be aware of your credit limit and never max out your credit card. You can make small purchases instead and be able to pay for it each month. Maintaining your total credit limit under 30% can help you manage your credit properly.
Use your credit card for needs
A credit card could help you in emergency situations such as paying your bills which are due before the payday or make badly needed purchases. Think of it as a temporary loan to yourself that you need to pay back as soon as you can.
Convert your purchases to an installment basis with lower interest
This is very important if you are using a credit card. You have to keep in mind that when you purchase something using your card, you need to pay it back. Although, you can make bigger purchases if you think you are prepared for it. One of the good things in using credit card, you can choose to convert your payment into an installment basis with lower interest.
Use your credit card to earn rewards or cash back
Credit cards have usual rewards and cash back depending on how frequent you use it for transactions. The more you use it, the more rewards you can earn. You can use it as cash, eligibility for promos, or avoid paying interest or paying for annual or monthly fee if you earn great rewards out of using your credit card.
Don’t skip payments
Pay for your monthly bill every month or at least pay for the Minimum Amount Due. This will help you to have more positive credit history, in case you plan to borrow again in the future. Late or missing payments could result to penalties or other additional charges like interest fees.
Adulting can be overwhelming at first, but if you do it responsibly, you get to manage everything well particularly your expenses. Home Credit offers a Home Credit Card which could be a tool to help you manage your financial situations responsibly. Check out [how to get the Home Credit Card](https://revamp-pilot.homecredit.ph/Pay-With-Home-Credit/Home-Credit-Card) today! Do it by downloading the My Home Credit App on Google Play Store.