A lot of people get excited with the idea of getting some sort of new credit option in their financial portfolio. Usually, this means they have signed up for a new credit card and now have access to several thousand dollars more cash. But for as exciting as this can be, there are also some concerns that you should think about before you end up in a debt spiral that you can’t get out of.

So to do some meditations on that idea, consider what you don’t want to do with the new credit card. First of all, you don’t want to get the wrong credit card to match with your spending habits. Secondly, you don’t want to spend more than you have at any given point. Third, you never want to forget to pay on time, is that leads to all sorts of nasty fees. And lastly, don’t get a credit card assuming that you can just max it out and declare bankruptcy later.

Get the Wrong Credit Card:

Don’t sign up for the first credit card that you have access to. You may end up with a card that has a high credit limit, a high interest-rate, and even hidden fees that you were not aware of initially. The search for the right credit card may take you in several different directions, but the more research you do initially, the less likely you are to get caught in an unfortunate legal and logistical trap later.

Spend More Than You Have:

One of the first good credit card habits that you should pay attention to is that you should never spend more money than you have in the bank. In other words, if you have $3000 in your checking account, don’t spend more than $3000 on your credit card. Keep your purchases down far enough on credit that at the end of the month you can pay for each time. Don’t go into debt!

Forget To Pay On Time:

It makes your credit rating go down if you don’t pay your credit card payments on time. Even if you just pay the minimum, that is better than nothing. If you can, put your credit card on autopay so that even if it slipped your mind, there would be an automatic deduction from your bank account that makes sure you don’t forget to pay your credit cards on time.

Plan On Going Bankrupt:

Some people think that they can abuse their credit card privileges and just claim bankruptcy later. This is not exactly how it works. Bankruptcy is for people who are in bad situations that got there responsibly. Irresponsible spending with the intention of declaring bankruptcy can make you end up with a lot of legal trouble later in addition to having bad credit.

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