I have never had a credit card before and I want one. What are some common things I should watch out for? Are there any offers that look good but actually cost you but don't help in the long term?
How can I build and maintain a perfect credit score?
Remember – a credit card is not free cash; it's only a loan (with very high carrying costs); so, my advice, especially to gain a good credit score is to:
A – only charge what you can ultimately pay by the due date of the statement. This may mean to charge things you now normally pay cash; but make sure you set aside the $$ to pay it
B – PAY OFF your credit card bill in full each month!!! This will avoid you the grief of paying interest, which is typically pretty high
C – do NOT take a cash advance unless you absolutely need to to stay out of trouble; the cash advance fees are pretty high (3% or more)\
To get and keep a great credit score – make sure you pay ALL your bills timely; including utility bills. Do NOT apply for every card/credit offer out there; to much available credit will lower your credit score. Also, applying for a lot of cards and credit offers will create a lot of "hits" (inquiries) to your credit profile which too will lower your credit score.
Good luck!!