A continuation from the previous blog, another helpful tip for those who are getting their first credit card:

Pay your credit card bills on time
In March 2010, a bill was signed to restrict credit card companies from charging unfair amounts to late-payers. Still, credit card companies profit off of delinquent cardholders. Pay attention to your APR, or annual percentage rate. This is the interest rate that is added to your credit payments. Your APR will increase if you pay your bills late. One of the best ways to avoid high credit card bills is to make payments during the grace period.

Know your finance charge. When you carry a balance, the cost of that balance will result in the finance charge. Usually, the credit card company will calculate an aggregate finance charge based on an adjusted balance and the current billing cycle. There’s no grace period offered on finance charges, you just have to pay them to keep the balance revolving.

Capitalize on your Card
Finally, pay attention to any rewards or points you can earn though the credit card offers. Tailor your purchases towards earning more rewards and points.

There are two things to keep in mind to maintain good credit. Keep your balance low, and pay your bill on time. If you can follow these tips, then you’ll be on your way to establishing great credit.