Managing your balance is one of the most important things you can do as an adult. You must prove yourself as a credit worthy consumer before you can borrow money for some of the big expenses in life. The new home might be out of your reach if you don't care about your credit cards early in your life.
Lenders will look at your payment history when they make the decision to lend you for a mortgage or a new car. You must have taken care of paying your credit cards on time in order for them to look favorable to the lender. Providing credit early in your life and making sure your bills are paid on time will save you a headache in the future when you decide to buy your first home.
It is a good idea to shop for a credit card that fits your lifestyle when you are young and build a good credit history. Take your time to find many credit card companies and decide which card will provide you with credit card benefits and rewards. Not all of them are created equally, so you will have to read their terms and conditions very carefully before applying.
Once you receive your first credit card, you should make it your habit to pay your bill on time every month. Credit is very valuable. It is very important to develop bad habits or get into a large amount of debt. With a credit card discipline it can be managed very effectively and will tell future lenders that you are someone who pays their bills constantly.
The best practice of using a credit card is to pay your balance every month. Many people think that you must have a balance to prove that you are making monthly payments in time. This is not necessarily true. Buying the things you can afford each month is a great way to show that you can handle credit wisely.
Start with a guaranteed credit card if you are trying to prove creditworthiness. You can get one quite easily with depositing your credit line amount. The lender does not risk by requesting the deposit and is likely to provide the card. Over time, you will establish yourself as someone who pays your bills, and you will be able to switch to an unsecured credit card.
Use credit wisely and you will gain many rewards from being a credit worthy consumer. You will be able to purchase a home, car or college education if you are a wise consumer.