Don't Spend What You Don't Have!

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Don't Spend What You Don't Have!

Last summer I opened my first checking account since I was entering college that August. Once I was set up, the financial adviser asked if I wanted to apply for a credit card the same day. I turned her offer down. I wanted to make sure that I could spend the money I actually did have wisely before I was given money I didn't really have.

Around October, I decided I wanted my own credit. I was tired of having to put things like my cell phone contract in my grandfather's name. Even then, I felt the need to limit myself, so I tried to apply for a JCPenney's credit card. That way I could only use it in one store. The downside was I needed another form of credit to qualify.

Finally I began to research different credit card companies: Visa, MasterCard, American Express. I really started to freak out when I saw that interest rates were sixteen to twenty-one percent. I decided to wait and talk to people I knew who had good credit.

A close adult friend informed me that there wasn't need to worry over the interest rates if I paid the bill in full every month. I wasn't sure if I could still build my actual credit score that way, but she told me that credit card companies paid more attention to the fact that payments were made on time.

I'm still not so sure about that, but I applied for a Visa card through my bank shortly after. I went through my bank because I already had the checking account with them. This way I can see both accounts at the same time when I log on on the bank's web site so I know what I can afford to spend.

I've made a general rule for myself: If it's not in my checking account at the time, it's not on my credit card. I don't think a month in advance and if I'll have the funds then. It's too easy to get ahead of myself that way. My credit seems to be fine, and I'm satisfied with my Visa. It's come in handy a few times.

Average Grade: B

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	Construction Foreman	17-Aug-07

I agree completely. It should only be used for certain things. That's why I only use Debit cards. I guess it depends what you have and who you set it up with.

	Tracy	27-May-07

Good point, and in America you have to have a known credit line.

	Kristy Leigh-Anna	26-May-07

True Vedha, but a debit card doesn't build any credit.

	Road-Roamer	26-May-07

Personally, a debit card is less tempting if you ask me

	nicole, parasite	25-May-07

Aah, it sounds so confusing.

	Margaret	25-May-07

Your logic is right.

	Tracy	14-May-07

This is a sensible article and good advice. It is hard to live within your means when you have a credit card. It's not like money, once you have spent it you know you have nothing left.