Buying on credit
A credit card does not increase the amount you have to spend in your budget. You should keep it for emergencies. A good rule of thumb is that if you can't pay for goods purchased on credit within 30 days, then don't buy them.
You must be careful not to let credit become the method of attaining material gain before considering the need, the value, and means of purchasing goods or services.
If you still need to buy on credit remember to make regular payments – missing a payment or making a late payment can affect your credit history and can hurt your credit score.
You can protect yourself with a low-limit, low-interest card; many banks offer student credit cards. If you use your credit card in the right way you will build a good credit history that will be beneficial in the future when making bigger purchases like buying a car or a condo.
Tips on Using Credit
- Watch your limits
- Know what you are paying for
- Avoid impulse buys
- Make regular payments
- Stop using your card if your balance is growing
- Avoid taking cash advances
- Always check your credit card statement
- Keep your card, PIN and security code secure
- If you have unexpected expenses talk to your bank about alternative products