4 ways to help be credit card confident.

When you’ve got a good amount of savings experience under your belt, it might be time to think about adding credit to your spending mix. However, becoming a credit card user takes responsibility and a little getting used to.

Here’s 4 ways get your confidence up.

1. Get to know your credit card

Credit is something you need to keep a watchful eye on. So it’s important you thoroughly read all the information about your new card to get the lay of the land.

Key things to understand include:

• What the fees are (if any)
• The interest rate on purchases, instalments and cash advances (they can differ)
• Your credit limit (so you know what you can – and can’t – spend)
• The minimum monthly repayment requirement (but you should aim to repay the total)
• The benefits of paying your balance in full each month (avoiding interest).

2. Ease it into your everyday budget

Don’t jump straight into a major multi-instalment purchase. Start by using it for smaller items and paying off your balance in full. This can help you know how much you can afford each month and the additional interest you’ll pay if you don’t pay the full balance each month.

It can also get you in the habit of only using the card for things you know you can afford. Remember, a credit card isn’t free money, it’s money you must pay back with interest.

3. Know your limits

Keep an eye on your credit card spending to make sure you don’t go over the limit.

In some cases, providers may block your card until you pay it off. Some also offer smart ways to keep track of how close you are to your limit.

4. Take advantage of automatic repayments

If you want to confidently make your payments on time, there are ways to make it happen without even thinking about it. For example, with Orange One, you can link your bank account to your card so the payment automatically comes out of your account each month.

The takeout

And there you have it. Take the time to understand your card, ease it into your budget and set up simple safeguards so repayments don’t sneak up on you. With a few good habits in place, your credit card can be a helpful tool that works for you, not the other way around.