First Time Credit Card Ownership Tips

So, you’ve decided to get your very first credit card. Good call! If you use your card wisely, this will certainly help to boost your credit history and improve your overall credit score. Whatever your reasons for getting a card, it’s good that you’re looking for information on the topic as a soon-to-be first time credit card holder. Although many people might look at this card as a simple tool for their finances, it’s certainly going to have a significant impact on your future.

If you use your card with discipline and manage it correctly, you will reap serious rewards. And that’s obviously the ultimate goal, right? There are a few different types of cards to choose from, and you’ll have to pick one based on your specific situation and needs. According to Best Credit Cards Review, promoters of top secure credit cards for business travel, “You can choose from several types of credit cards, and the one that you pick will depend on your current situation and your needs.”

With that said, let’s take a look at everything you’ll need to know in regards to your first credit card. Hopefully this info will help you experience much-needed peace of mind.

A Brief Explanation of Credit Cards

Credit cards and debit cards obviously look the same, but there is a big difference between the two. A debit card removes funds directly from your checking account. On the other hand, a credit card provides you with a line of credit that you can borrow against. As a first time credit card holder, your limit will most likely be small so you should expect to only get about a few hundred dollars for your limit.

Credit Card Interest Rates

When you buy something using your credit card and carry a balance over the following month, you’ll have to pay interest on the balance.

Depending on your card and the issuer, there are different potential interest rates that you’ll have to pay. And let’s not forget about your credit score, because that will also factor into your credit card interest rate. As a future first time credit card holder, you should expect to have to pay higher interest annually at around 20%.

 But don’t think that you’re going to be stuck paying the high interest. On the contrary, many credit card companies will offer a grace period. Within that timeframe, you could pay your balance off entirely and you’ll never have to pay any interest at all. The majority of interest rate grace period lasts about 25 to 30 days on average. So if you’re looking to avoid paying interest, pay very close attention to the calendar and keep an eye on your due dates.

Credit Card Benefits


As you can imagine, there are many great benefits to holding credit cards.

Although many people prefer to avoid getting a credit card because they’re afraid of paying interest rates and service charges, you can use credit wisely and it will provide many benefits. For starters, every month that you have a balance, you will begin building credit as long as you make the minimum payment on time.

It’s good to do this if you’re looking to help improve your credit score. In less than a few years, you’ll be able to get a bigger loan for a house or have no trouble renting an apartment. Additionally, by boosting your credit rating, you may be able to qualify for bigger bonuses and other credit related rewards.

In many cases, the credit card holder can get 1% to 2% cash back when they purchase items using their credit card, and you’ll never have to pay any interest if you pay your balance in full prior to the end of a billing cycle.


Between improving your credit rating and getting great rewards points, it’s incredibly advantageous to get a credit card from a reputable company. So take advantage of this opportunity sooner rather than later.

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