Credit Card Tips: Don't let your first credit card become a problem, know these 5 secrets before applying for it..

In today's time, a credit card is not just a piece of plastic; it is the first step towards building your financial freedom and future credit history. Yes, people have become dependent on credit cards for every small and big expense in their lives. So if you are going to get a credit card for the first time and do not understand which card to choose because every bank calls its credit card the best, some talk about more rewards, some focus on cashback, while some show premium features like lounge access.

So at such times, the confusion increases so much that users do not understand which card will be right, but a choice made with the right information will prove beneficial for you, and a wrong choice can also put a burden on your pocket. So we will understand what important things those who get a credit card for the first time should know about.

Understand spending habits
Before choosing your first credit card, it is most important to understand what you spend the most on. If you do a lot of online shopping, then take a card that gives more rewards on shopping sites. If you pay petrol, mobile, or electricity-water bills regularly, then a card with cashback will be right for you. On the other hand, for those who spend more on food and travel, there are different categories of cards available. The right card will be the one that matches your spending habits.

Pay attention to fees and interest.

Often, new users choose any card for themselves without thinking and later get stuck in the maze of annual fees and interest rates. In the initial time, always try to choose a card with low fees or no fees. Nowadays, many banks and fintech companies offer such cards in which the annual fees are very low or the fee is waived on completing a certain expenditure. In such a situation, always keep in mind that if you do not pay the credit card bill on time, then the interest rate can be around 30% to 45%, which will be very heavy on your pocket.

Eligibility and Credit Score

While taking a card for the first time, banks often ask about income and credit score, because new users do not have a credit score, so users should always take such cards that are specially made by the bank for students or new customers. Such cards will not only be your first card but also an opportunity to build a credit history for the future. So, by making timely payments every time, your score will be good, and in the future, you will easily get big credits like a home loan or a car loan.

Avoid taking multiple cards at once

Usually, it happens that new users apply for multiple credit cards at once. By doing this, your credit score goes down a bit every time, and banks understand that you have a risk of taking out more loans. Therefore, in the beginning, choose only one good card and start your credit journey with that.

Terms and conditions should be read carefully.

While taking your credit card, you may be happy to hear about offers and discounts, but every offer has its terms and conditions; find out about them. Also, always read the official documents so that you do not have to face any problems later.

What is the first credit card in life?

Actually, the first credit card is not just a means of spending, but it is the beginning of building your financial discipline and credit score. That is why by always choosing the right card, you can take advantage of rewards, cashback, and discounts, but the wrong choice can burden you with interest and charges. (Note: The news is based on general information, contact the bank for more information.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.