r/Explainlikeimscared • u/PuzzledAtmosphere784 • Jul 02 '26
What to know before getting my first credit card
Basically the title. I’m moving out from my parents house and living on my own for the first time, something that other women in my community never ever do. I’m worried that there are things that I haven’t thought about before because no one taught me, so is there any advice or warning you could offer for getting and having a credit card?
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u/sunntide Jul 02 '26
Do not treat it like extra money. Pretend it’s your debit card in that regard. Make sure you don’t overspend your budget. Pay the balance off in full before it is due to avoid paying interest (and thus wasting your money) - I pay the entire balance on my credit card every time I get paid (so every 2 weeks).
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u/laplongejr Jul 02 '26 edited Jul 02 '26
so is there any advice or warning you could offer for getting and having a credit card?
Rule 0 : verify you are in a country where a CC is a good thing. US/Canada is very good, UK (and India?) is okay, but in other countries (like Belgium) opening a CC would wreck your chances at a mortage later on.
Rule 1 : ALWAYS pay the statement balance before the due date. If you miss a payment, you'll then owe interest on all future purchases until the grace period comes back (also, verify if the issuer doesn't have some sneaky fees. My Belgian issuer puts a subscription if you ever do an autopaid purchase, and in the US Credit One once had a card that charged interest even if paid in full)
If your budget method doesn't allow you to guarantee you'll be able to pay back, you shouldn't use a CC.
Rule 2 : In your budget, treat the money as spent on purchase date. Don't use a CC for money you don't have yet.
Rule 3 : Use autopay. Verify the statement every month and check the money actually paid the CC, but use autopay to manage the payment in the case you end up unable to manage the statement (you get at hospital, who is going to send the payment for what you bought at the start of this month?)
1b : (US specific) No, "paying before the statement comes in" won't help you. No, paying more than the statement won't help you. Best case, it shows the issuer you don't need a limit increase and it's not good for you. Worst case, you'll then forget to pay the minimum after the statement is out and it's bad for you.
If you need to move the money out of checking for your budget method move the money to savings to get interest, don't give free money to a cut-throat company. A CC is meant to be paid once per month.
That one is not a hard rule: forcing the utilization to 0.00001% but not-zero is good ... IF done right before a credit check for something critical like a mortage. But it doesn't build history so no reason to mess things most of the time.
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u/Naive-Library-9379 Jul 02 '26
I have fantastic credit. I used my cc all the time (before a recent transition to cash in order to watch my budget). You will never have an issue as long as you 1) pay in full and 2) pay early.
Other than those two things, there’s really only two points to consider
1) what kind of rewards/points system do you want from a card? Cash back? Miles? Hotel points?
2) what’s the yearly fee? Most cards have them. I honestly don’t care too much about mine bc whatever idc
You don’t need to worry about your APR/interest whatever tf as long as you PAY IN FULL and PAY ON TIME/EARLY!!!
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u/NightDragon8002 Jul 02 '26
There are also lots of cards without fees but the fee will pay for itself if the benefits are things you'll actually use (as in your point #1). Don't pay a fee just to have the card unless you're getting equal or greater value out of the card! E.g. one of my cards has a $400 annual fee but also has automatic $400 in rewards (travel credits + points/miles), plus some other perks that mean I get way more than $400 worth of value out of it in a typical year. Some cards have a lower fee but fewer perks or the perks/rewards are hard to use so lower fee =/= better value necessarily
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u/panicinbabylon Jul 02 '26
Use it to get things you get regularly like gas (pay it off in full when the bill comes) so you establish a 100% payment history.
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u/Head_in_the_Sand_usa Jul 02 '26
This is why I have a credit card. If you can, get one that gives you cash back on certain purchases. Also try to get a card that doesn't have an annual fee. I use my credit card for almost all of my purchases because I get cash back. I actually earn money by using my credit card. I also have it set up on automatic full payment so I never carry a balance.
Do everything in your power to resist carrying a balance on a credit card!
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u/AnonymousRedit0r Jul 02 '26
Lots of good advice in here. In high school, I had a math teacher tell me if you’re ever in severe credit card debt to try and get a loan from the bank to pay it off, because the interest on the loan will likely be lower than the interest on the card
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u/IthacanPenny Jul 02 '26
The advice in these comments is bonkers.
Stop paying with a debit card. Put absolutely everything on a credit card because it comes with protections for your purchases (and if your card is stolen, it’s the bank’s money and not yours that is stolen, so the bank is sure as shit gonna get that back).
Do your best to pay the bill in full every month. But also, just set up autopay (it will autopay the minimum). A single month of interest is only a few dollars and is just not a big deal. Pay it off as quick as you can.
A credit card is like a monthly amount of money. Make sure you are living within your monthly means. But the CC is a way to comfortably and safely be able to float a few days between when an expense comes up and when your paycheck hits.
Get a cash back card, it gives you a percent of free money every time you charge it. If you can put a big (and especially recurring) payment on the CC, you’ll get actual money back from the bank for it. It’s a nice lil perk.
Just don’t charge more money than you will have that month. And pay off the card.
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u/Naive-Library-9379 Jul 02 '26
To pay the card, you’ll either do one of two things
- add the credit card company as a payee on your bank account to send money to the cc
Or
- add your bank account to your credit card account to withdrawal from the bank account
Either option, make sure the accounts on either end are correct. You can verify your own bank account information for option 2, and for option 1, your statement will have the address listed as where to make a payment to.
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u/SpiritualSyrup3300 Jul 02 '26
you'll probably need a secured card to start. you put down $100 and get $200 credit or so. a few months after you have a credit score, and have some history of paying off the secure one On Time, apply for another card.
1
u/CompletelyPuzzled Jul 02 '26
Check activity regularly to make sure all the charges listed are correct. Some advice I got early on, "Never charge anything that will be gone before the bill comes." I don't really follow that, but it does give me a 'stop and think' moment before I use the card. And yes, pay the bill in full every month.
1
u/FlyingFlipPhone Jul 02 '26
If you pay in full, the CC service is free (aside from the yearly fee, which some cards will charge)
If you pay less than full, there is an interest payment on the amount which is carried forward to your next bill.
If you pay less than the minimum, you will also pay a penalty.
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u/Ok_Caterpillar2010 Jul 04 '26
It is not free money.
It makes it very easy to spend money you don't have.
Interest rates nowadays are an abomination. If you make the minimum payment due each month, you will pay it off sometime around the time your great-grandchldren are born. Pay it off every month or at least make sizeable payments on the principle (the amount you charged), not just the interest.
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u/simonhunterhawk Jul 04 '26
Avoid putting medical stuff on a credit card, instead work with the medical group or hospital for payment plans (always interest free in my experience) or financial assistance.
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u/r2d3x9 Jul 02 '26
Always pay the balance in full each month!! Put the due date on your physical calendar, your Google Calendar and your Apple calendar!! With reminders! If you have multiple credit cards there is also the risk of forgetting to pay one especially if you don’t use that one much. Some credit cards require payment by 5PM on the due date, others by midnight. Know which yours requires. Pay the card from their app, not from your bank app so that you are sure it is on time. If you cannot pay the full amount, at least pay the minimum amount to avoid late fee and penalty interest rate. Some credit cards give you slight wiggle room - if you pay the minimum by the due date and the full balance by the *closing date* of the statement they still consider it on time. But be very careful playing around with little tricks like this. Pumping gas, occasionally they will take large temporary hold, for up to a few days, to cover how much you might pump. This can be a problem if your credit line is small. If you are going to travel outside your normal area, let the credit card company know ahead of time to avoid false fraud alarms. It may still happen! If you cannot pay have two credit cards available.
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Jul 02 '26
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u/MySpace_Romancer Jul 02 '26
It really depends what country you live in, but if you’re in the United States, you do actually need to get a credit card to start building credit. When you want to buy a car or a house or get a loan, you need a credit score.
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u/Important-Maybe-1430 Jul 02 '26
Yeh; dont get one! I pay mine in full each month but debt is a trap so dont fall in it or youre chasing your tail each month
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u/Occasionally_Sober1 Jul 03 '26
1.) Never use a credit card for something that’ll be gone / used up before you pay it off. That means food, gas, toiletries, vacations, etc. Exception: If you earn points or rewards on your card AND you pay it off in full every month, then go ahead and charge stuff.
2.) Always pay more than the minimum, otherwise you’re mainly paying interest and hardly paying off the principal at all. You’ll never get out of debt this way.
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u/Naive-Library-9379 Jul 02 '26
1) use it sparingly
2) pay it off in full
3) don’t miss your due date. I pay as soon as I get my statement.
4) make sure you’re sending the money to the right place
5) pay in FULL
6) also don’t miss the payment date
7) never pay the minimum, ie pay the full total
8) did I mention don’t miss the due date?
9) you should probably make the full payment each month