A BEGINNERS GUIDE TO CREDIT CARDS.

Credit cards allow you to pay for goods and services, on credit. In other words, you can be broke and still be able to pay your bills as long as you have an active line of credit.

A line of credit lets you borrow money when you need it, up to a preset borrowing limit, and is based on your level of income. This simply means, the more you make, the? higher you can borrow. Credit cards are issued by a bank or a financial service company that’s not necessarily a bank, like O3 Capital.

You may ask yourself “why should I get a credit card?” but the real question is, why shouldn’t you? Below are the numerous benefits you get to enjoy when you own a credit card, especially an O3 Card:

• Ease and convenience: You can get what you want, when you want- investment, travel, shopping, etc. Imagine wanting to? buy two things but you only have money for one, you either buy one and postpone the other but with a credit card, you can buy those two things today and worry about payment later.
• Discounts and Cashbacks: The amazing discounts and cashbacks you get at merchant stores nationwide is second to none. Yes! You can get your favorite items at a discounted price in any of our merchant stores.
• Increase in Credit Score: The more you use your credit card, the more your credit score increases. A credit score simply proves your creditworthiness, it will help you obtain loans or credit without any difficulty in future. Credit cards have also proven to be excellent for budgeting too.

Getting your first credit card can be a step towards building a strong financial future, if you do it right.?So, here are some tips to help you out.

1. SET A BUDGET

A budget helps create financial stability. Following a plan, tracking and allocating your expenses makes it easier to pay bills on time.

Overall, a budget puts you on a stronger financial footing for both day-to-day and long term expenses. Make sure you know how much you can spend and pay off at the end of the month, this will keep you from biting more than you can chew.

2. TRACK PURCHASES

After calculating the amount you can afford to spend in a month, you need to track your purchases throughout that month, this is to ensure you don't go overboard. Maintaining this discipline will help you build a good credit habit. Do not take loans or spend credit that you do not plan to pay back.?

?3. DON’T MAX-OUT YOUR CARD

It can be really tempting to use up all the funds available on your credit card…Don’t! Because money is available, doesn't mean you should spend all of it at once.?To build better credit habits, it is recommended to use only 30% of your card's funds monthly.

?4. CHECK STATEMENTS

Every month, your credit card issuer sends a statement that details your transactions from the previous billing cycle. Make sure you always check your credit card statement and ask questions for clarity. Don't assume, always confirm.?

5. USE THE MOBILE APP

Keeping track of your credit card account is even easier with your credit mobile app. You can view your balance, check your available credit, confirm your payment, and more whenever you want.

Now that you are equipped with the knowledge, benefits and tips for managing a credit card, it’s time to start using yours effectively and efficiently!

If you don’t have a credit card yet, click here to begin your journey to financial stability.