5 Tips for Using Your First Credit Card

Dec 16, 2021

NEW YORK - December 16, 2021 - (Newswire.com)

iQuanti: A credit card can be a big step in reaching larger financial milestones like getting a car or house loan, so getting your first card can be an exciting process. But it's important to know the best practices so your first credit card doesn't damage your credit rating or your savings. Be mindful of your credit card usage when you first obtain one, and your long-term financial plans will become that much easier. Here are 5 tips to keep in mind to learn more about how to get a credit card for the first time

Check for fees and interest 

Many first-time credit cards, such as student or secured credit cards, do not charge annual fees and sometimes even offer no interest rates for the first year of use. Make sure to check when and how much of an APR (Annual Percentage Rate) will be charged after this introductory grace period ends. 

When looking at prospective cards, you should also see if there are any application or monthly fees involved. Even though these fees aren't common for first-time card users, it's worth making sure you don't run into any unwanted surprises. 

Pay your monthly balance in full 

Your number one priority when using your first credit card is to pay your monthly balance each month in full, if you can. Not only will you improve your credit score by doing so, but you can also avoid any unnecessary interest on your balance. 

If you cannot pay your balance in full, make it your top goal to at least pay the minimum monthly amount. While paying the minimum amount can affect your credit negatively overall, it can prevent you from racking up extra penalties for missed payments. 

Watch out for big expenses 

When you receive your first credit card, it might be tempting to use it for high-cost purchases. This may help you if there is an emergency expense you must pay immediately, but you should avoid larger payments on your first credit card when possible. 

A larger purchase will be more difficult to pay off immediately. Delaying this payment raises the chance of accumulating a larger amount of interest on your purchase, which can hurt your wallet and your credit in the long run. 

Protect against fraud 

Unfortunately, credit card fraud is a possibility for all credit card users. First-time card users may find themselves particularly susceptible to credit card fraud since they may be unfamiliar with how to protect themselves. 

Make sure to check your credit card bills regularly for suspicious charges, and keep regular contact with your card issuer to alert them in case evidence of fraudulent activity presents itself. 

Take advantage of cash back and rewards 

Although there is a lot to watch out for with your first credit card, if you use it wisely, you'll find yourself enjoying the number of rewards your particular card offers.  

Check to see if your first credit card offers a cash back or rewards programs, and focus your credit card use on these rewards to start getting the most out of your card as soon as possible. 

Reach your financial milestones 

Your first credit card can allow you to build your credit with minimal risk and upkeep on your behalf. If you follow a clear and cautious strategy with this first credit card, you'll find yourself in a better position to take larger steps with loans and higher-level rewards cards in the future.  

Smart credit card usage can mean great savings and finances, so do your research and make the right choices to secure your financial life goals. 




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Original Source: 5 Tips for Using Your First Credit Card

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