Credit cards are great financial tools, but in order to maintain a good credit rating, it's important to practice responsible financial habits whenever you use your card. With this in mind, Christina Panay, vice president of credit cards at TD Canada Trust offers the following tips:
Understand how credit cards work
Before you apply for your first card, take the time to understand how credit cards work. Having a credit card in your wallet is not the same as having cash. Understanding the basics like interest rates, grace periods and late fees will allow you to enjoy the benefits and privileges that come with a credit card.
Pay your monthly bill in full and on time
Try to pay your monthly credit card bill in full by the due date every payment period. If you aren't able to do this, pay at least the minimum amount shown on your statement. Contact your bank or issuer of card if you are having trouble making payments. Many lenders may be willing to make payment arrangements with you, and this is always a better option than skipping a payment entirely.
Beware of whom you do business with, especially online
Beware of fraudsters who may try to cheat you out of your hard-earned money. Before making any purchases online, check for the secure padlock symbol or "https" in the website address bar. This means that it's a secure payment site. If you suspect you have been a victim of fraud, contact your financial institution immediately.
