Credit card companies seldom teach first timers the proper way to use a credit card. Why would they? They make more money from people who don’t know exactly how to be responsible with a credit card. In all the excitement of receiving your first credit card, there are some common mistakes that you can avoid to ensure your credit remains favorable.

One of the most common mistakes that beginners make with credit cards is charging more than they can afford. At first, a credit card seems magical. You can purchase almost whatever you wish, without having to spend any of your money. This mentality is why many beginners max out their credit card within only a few months of receiving it. The best rule of thumb is to charge only what you can afford to pay. It may sound contradictory to …

A good credit history is essential in today’s economy.  Traditionally, you only had to worry about having a good credit history for credit cards and large purchases such as home and automobiles.  However, good credit is vital in even the smallest financial transactions, like getting your utilities turned on or establishing cellular phone service.  When you don’t have good credit, these service providers require you to pay a deposit to establish service.  Start building a good credit history as early as possible to avoid paying hefty deposits.

Paying your bills on time is the easiest thing you can do to build a good credit history.  Even bills that aren’t credit cards should be paid on time.  While utilities and similar bills aren’t regularly included in your credit history, when unpaid, they can wind up on your credit report as a collection.  Collections have a negative impact on your credit.
The timeliness that …