Applying for a credit card? Read this first
A credit card can be an invaluable financial tool for anyone. Credit cards allow you to earn points, provide you with peace of mind against unexpected financial emergencies, and help you to build up a solid credit history . If you’re applying for a credit card for the first time, however, you may be wondering how you can use it responsibly. Here are some good credit card practices to keep in mind:
Pay off your balance every month.
If possible, it’s best to pay off your credit card balance in full every month. If you start carrying a balance, you may eventually find that your credit card payments have become a burden on your finances. Before you apply for a credit card, consider how much you plan to use it every month and whether your current income makes it practical for you to pay it off consistently.
Don’t overuse your credit card.
You might be tempted to go crazy with your card once you have it, but it’s important to use it in moderation. Even if you’re paying off your account each month, it’s still best to aim not to use more than 25 to 30 percent of your credit limit at a time. Using more than that can hurt your credit score, and it can also make it more difficult for you to keep paying off your account in full.
Keep an eye on your account.
It’s a good idea to get into the habit of checking up on your credit card account regularly, and you might want to set up card activity alerts to be sent to your email or mobile device. This way, if there are any unauthorized purchases made on your account, you’ll know about them right away. Identity theft is an unfortunately common problem in the United States, but paying close attention to your financial accounts is one of the best ways to protect yourself from it.
Alpine Bank is a locally owned and operated bank with nearly 40 locations around the state of Colorado. They are committed to giving back to the community and forging strong, lasting relationships with all their customers. When you’re looking for a bank in Steamboat Springs, CO, feel free to call (970) 871-1901 with your questions.