What advice would you give to new credit card holders?

I am a sophomore in college, and I just put in an application for a student credit card. I want it for little necessities like gas and food. What advice do you have for me so I don't end up in Grad Debt?What advice would you give to new credit card holders?
Your credit rating is one of the most important factors in your lifetime. It determines your interest rates, insurance rates, mortgage rates and even chances for employment.





You need to understand how the system works and should get the information directly from the source FICO. You can use the link I have referenced in the source area to see how credit works.





Way too many people answer this type of question but leave out many important aspects. To properly answer your question would take too much space.





There are some simple rules to follow, they are:


Never ever use more then 10% of your line of credit (you can use more as long as you pay it off quickly). This is called utilization ratio, the higher the percentage the more damage to your score.





Never keep your balance close to your maximum





ALWAYS make your payments on time, just one late payment stays on your credit report for 2 years as per the FCRA.





Hope this helps answer your question.What advice would you give to new credit card holders?
I got my first credit card as a freshman in college, so i should have a similar perspective.





Never buy anything with a credit card unless you have enough money in your bank account to pay off that billl at that moment. In other words, pretend like you are writing a check everytime you use it, and if you don't have the money in your account, then you can't use your card. This is not the reality - you can spend up to the maximum credit amount, probably about $1000, but you don't want to do that unless you will be able to pay it off that month.





If you use your credit card for all your purchases, and then pay off the bill (in full) each month, then you will build perfect credit. This will help you with future big purchases such as a new car, a new house, et cetera.





If you do not pay off the full amount each month, then you will pay a very high amount of interest (12% or higher usually), and you will also damage your credit score.





Credit cards are great, just make sure to follow the rule of thumb i mentioned at the beginning - don't spend more than what you have!
Well, you should definitely try to control yourself when spending money for shopping.





By the way, this website gives great tips and advices on how you can use your credit card for efficiently. Check it out:


http://www.1st-debt.com/credit-card-consolidation/
Don't use it if you have the cash.


Pay it off every month.


If you want to build credit buy something for say 100 dollars and pay


over 5 months at a regular rate and on the same day every month.


this will give you credit.


Don't use it just because you have it


Don't assume its just free money.


If you get behind in payments, stop charging and call the card


company and let them know whats happening.





Don't get more cards. Just keep one and build your credit and


you will be able to buy a car later on.


Pay on or before the due date.
Do not abuse it! I know, you are probably thinking noooo I wont, but alota people say that and end up doing it! The most important thing to remember is pay off your bills on time ALLLWAYS! The later you pay the larger interest you incur on yourself the larger the bill the larger the debt. My point is just don't let your debt spiral down on you! ... Plus if you do not pay on time, it would hurt you credit score that would have future consequences on thinks like ur mortgage or auto loans or even auto insurance!





Use it as little as possible ... Use cash or a debt card more often!
Just make sure you can pay the balance the following month. A credit score changes about every 12 months. Your score should go up 5 to 10% per month providing it's paid on time.