You just got your first credit card, now what?

Shopping spree? No big deal, you can make payments to pay off your balance, right?

While it seems ideal, it could cost you more than you realize. That’s why NexTier Bank is here to help you on your financial journey in learning how to spend responsibly with credit cards and recognize how they can be a tool to help you build credit.

Here are a few tips for responsible credit card usage as you learn the ins and outs of credit:

Consider the Interest — Credit Isn’t Free Money

When you make a purchase using a credit card, you are merely borrowing money from the card issuer. Unless you pay the balance in full by the due date, you will be charged interest on what you owe.

While many credit cards have an introductory 0% interest rate for a specific period of time, most interest rates can average up to 29%. The best advice is to only use your card for purchases you know you can pay off in full, or in case of an emergency.

Pay on Time or Before the Due Date

Paying your credit card bill on time is crucial. Not only can you hurt your credit score by paying late, but you will also be charged late fees and penalty interest rates. The best way to avoid late payments is to set up automatic payments through the credit card’s mobile app. If prefer not to set up automatic payments, you can set reminders on your smart phone to prompt you to make your monthly payment.

Don’t Forget: You’re Establishing Credit & a Credit Score

The average credit score for Gen Zers is 680, according to the American Bankers Association. And while less than 2% of U.S. consumers have a perfect 850 credit score, one way to establish a good credit score is through responsible credit card usage.

A good way to raise your credit score is by treating your credit card like a debit card by making small, regular purchases like gas or groceries and paying the statement balance in full by the due date every month. To learn more about how credit scores work, click here.

A NexTier Bank Secured Card is a Great Way to Start

With so many credit card offers out there it’s hard to know which one is best for a first-time credit card user. The NexTier Bank Secured Card is perfect for anyone who wants to improve or establish credit.

Once approved, NexTier Bank will send funds from your account to Elan (the credit card issuer) that are pledged as a security for your credit card account. A minimum refundable security deposit of $300 ($5,000 maximum) is required to open the account. You can set up automatic bill pay and account alerts to help you keep an eye on your balance.

To learn more about the NexTier Bank Secured Card or to apply, click here.