Have you recently graduated from university? Congratulations! Of course, we understand that you’re probably feeling a little overwhelmed now that your life isn’t planned out by your syllabus and exams. There’s no doubt about it though, once you start to get the hang of it, living life financially independently is the best. But there’s one key (other than your degree) to being a financially independent adult that helps unlock the rest of the world to you.
A credit card .
Of course, this is a major financial responsibility, so you could use some tips on how to use a credit card the right way – aka, without going into debt and wrecking your credit score. Don’t worry, we’re here to help.
Why get a credit card right out of university?
Because you need to start building your credit score as soon as you can! You probably won’t be able to get a credit card until you have your first job because you have to show that you will be able to pay off the bills. But once you get that job, head to the bank and open up your first credit card if you think you have the discipline to repay your outstanding balance each month.
The earlier you start building a credit history the better. The longer you use a credit card, the more history you will accumulate and the easier it will be for you to get approved for big purchases, like a home or car in the future.
What to know before you get your first card
Your local bank is one of the best places to get your first credit card because they will be able to take the time to sit down and walk you through the process and responsibility. Plus, you already have a relationship with them, improving your chances of getting approved. If you’re after a credit card that offers a low interest rate, consider Beyond Bank Australia’s Low Rate Visa Credit Card . This card has 0 per cent on balance transfers for 12 months and up to 62 interest-free days on new purchases – perfect for your first card!
How to use a card responsibly
It can be tempting to put some big ticket purchases on your credit card, but you should only get what you can afford. And let’s face it, most entry level jobs aren’t going to allow you to get that massive flat screen television you’ve had your eye on, so stick to smaller items like groceries or your phone bill.
When you first start using a credit card, think of it like cash – never spend more than you have. Pay your bills on time, and you’re on your way to a great credit report!
Want help setting up your very first credit card? We’re here to help at Beyond Bank Australia – contact us today  and we’ll make sure you’re prepared.