If there is one thing that may accurately predict your future financial responsibility, it might be your very first credit card. You can learn a lot about how you are going to deal with money in the future by looking at what you do the first time you are given a card that lets you spend money you do not have. Unfortunately, more than a few get their first card before they are ready for the responsibility. They end up overspending and putting a dent in their credit score at a very young age. You are not thinking about it now but this can hurt your ability to borrow money for a long time to come.

Credit card companies target college students. They don't care if you have no prior credit, because they are hoping you become a lifelong customer. When you get your first credit card your spending limit may be higher than what you were expecting. If you have a two thousand dollar limit, but really haven't thought past what happens after you run that limit up, you are heading for disaster.

When you are offered your first credit card, it might be a good idea to take the offer, but you can also look for the best credit cards online. You can do easy comparisons, get instant approval in many cases, and maybe come up with a better offer.

If you haven't had a lot of the good stuff in your life, it will be very easy to go a little crazy and charge all sorts of things you have been dreaming of owning. Before you do this, you have to consider how you are going to pay for it.

The best use for a first credit card is to help you build credit. Buy only things you know you can pay back relatively easily, and keep the balance of your first credit card open for emergencies. A good rule of thumb is to not allow the unpaid balance to exceed 1/3 the credit limit of the card. For example, if your credit limit is $1,000 then do not have more than $330 in unpaid balance. If you keep your unpaid balance under 1/3 and make your payments on time, you are on your way to a life of good credit. Something that could save you thousands and thousands of dollars down the road.

If at any time you find that you are having difficulty paying off the balance of your first credit card, make sure you get on the phone with the credit card company immediately and ask for advice. They don't want to you to fall behind any more than you do. They may be able to lower your minimum payment until you get caught up, but you should know that they may not do anything. Always pay as much as you can afford no matter what your minimum payment might be. If you just pay the minimum payment each month, you are never going to get the balance paid off. Your first credit card should give you a leg up on establishing good credit, though for many young people it ends up being a black hole they can never climb out of.

(c) 2006 by Peter Boston. Learn how to apply for credit cards online and find the best credit card offers.