The Do’s And Don’ts Of Being A First-Time Credit Buyer

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If you haven’t previously had credit, you need to take a few steps towards building a strong credit record. 

Make 100% of your payments on time. One of the easiest ways of establishing a god credit record is by paying on time. This shows creditors that you are a reliable consumer. 

Keep your credit utilization low- this is your balance when compared to your limit. Having too much credit can have a negative impact on your credit score. 

As a first-time credit buyer you need to ensure that you fully understand your credit agreement. Don’t sign any agreements without fully understanding the implications of buying on credit. This means that you need to understand the fees involved and the interest you will be liable for paying. 

If you are applying for a credit card, it’s important that you apply for a credit card that is targeted a people who don’t have a credit history. 

When handled responsibly, your first credit card can help you build credit. 

Do’s of being a first-time credit buyer: 

  • Read your credit agreement thoroughly and make sure that you understand the terms fully.  
  • Apply for credit only if you are sure that you can afford to make repayments. This means that you need to know your credit score before applying.  
  • If you have a credit card, use it wisely. This means that you spend no more than 30 percent of your available credit line.  
  • Pay on time. 
  • Pay your balance in full. 
  • Use the card for emergencies only. 

Don’ts of being a first-time credit buyer: 

  • Avoid using your credit card as a primary means of payment. 
  • Don’t skip repayments. 
  • Don’t avoid notifying your lender if you are having trouble repaying your debt.
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