Credit Card Responsibility

Credit Card Responsibility
Growing up with the advancement of technology has created a whole new species of people known as the Millennials. Millennials are just. . . different. Millennials do things their own way, which baffles every other generation.
Research shows that most millennials do not have a credit card. According to money.cnn.com, less than one third of millennials have a credit card.
Being exposed to debt has had an impact on the generation. Having friends or family in debt has made millennials extremely debt-conscious. While a good portion of millennials have student loan debt, it ends there for them. The idea of more debt is intimidating, preventing them from using a credit card.
However, credit cards are important–nearly essential for your life. Why?
● Building your credit is necessary to get accepted into a nice apartment.
● Your credit determines whether you qualify for financing on a new car.
● Your credit even determines what you pay for a new phone sometimes.
● Credit cards provide a short-term loan. Just in case.
● If you need a large loan, your credit determines whether you can get one or not, and determines your interest rate as well.
● Being responsible with your credit card will help increase your credit score, which can give you cheaper insurance rates.
Because credit cards are the best way to build your credit, millennials who do not have one should consider applying for one. Being responsible with your credit card is key to success–build your credit while avoiding further debt. Here are a few tips to follow to be responsible with your credit card.
1. If you’re debt-conscious, this should be easy for you–do not spend more than you can pay back.
2. When you can, pay back more than your monthly minimum.
3. Keep a close eye on your finances–know where your money is going, and know how much money is coming in. Stick to a strict budget.
4. The lower the fee, the lower the interest, the better.
5. Timing is everything. Set an alarm on your phone every month to remind yourself to make your payment. Write yourself a note and stick it on your fridge. Write a note on the back of your hand. Whatever works.
6. Set up Auto Pay, if there’s an option. Do not be late on a payment, this can negatively impact your credit score. Even if you’re just late one time.
7. Choose your payment date close to your pay-day, so you’re guaranteed to have enough money to pay it right away. You’ll never forget when payday comes, so it’s likely you’ll remember your credit card payment on that day as well.
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