10 Things To Know Before Getting Your First Credit Card

Getting your first credit card is one of the most powerful financial tools that can benefit you in several ways. We know that you may have to scroll through the internet and learn about how credit cards work and how you can handle a credit card.

But before getting your first credit card, you should know about some details that can help you save your money and maintain a good credit score. Let’s focus on some vital points here:

Why do you need a credit card?

Before getting your first credit card, you should know why you need a credit card in the very first place. Having a credit card can help you maintain a good credit score that can help you get loans in the future.

Apart from that, it is also a convenient payment method, and you don’t need to carry cash all the time as you have a credit card.

Types of credit cards:

Now that you are getting your first credit card, you should know what type of card you want as per your financial preferences. The different types of credit cards in India:

  • Travel Credit Card
  • Fuel Credit Card
  • Reward Credit Card
  • Secured Credit Card
  • Shopping Credit Card

All these cards have different fees applicable, so you should make sure to avail credit card that is suitable for you as per your financial needs.

Essential Things you should know before getting your first credit card:

1. Income:

The first thing that the credit card issuer will ask you is your income information to know your repaying capacity.

When you think about getting your first credit card, then one thing that you would keep in mind is that your income plays a vital role in the application of a credit card as the credit card issuers consider the income as proof that you will pay your Credit bill timely.

2. The right type of Credit Card:

As we have already mentioned, there are several types of credit cards, and you should choose the right kind of credit card before getting your first credit card. In this process, your income plays a vital role in increasing the choices of cards.

3. Credit Limit of a Credit Card:

In the initial state of maintaining your finances, you should always go for a low credit card limit. Getting your first credit card depends upon your income, and so does the credit limit of your credit card.

Once you get accustomed to managing the card, your issuer may provide you with other options for increasing your card limit.

4. Charges:

Several points are related to the fees of the credit card. Before getting your credit card, you should check foreign transaction fees, joining fees, finance charges, annual fees, transfer fees, etc.

It is best to go through the charges so that you can avoid being burdened down by unexpected charges.

5. Penalty:

What if you may face a situation when you may pay off the balance later than the supposed payment due date? If the penalty on the late amount is too high, it can ruin your financial condition and credit card history and lower your credit card score.

So it is best to check about the penalty on late payment before getting your first credit card.

6. Credit Utilization Ratio:

Have you ever heard of this phrase? No? Don’t worry, pal, we are here to enlighten you! The credit utilization ratio is the revolving credit that the customer uses and is divided by the total revolving credit that the customer has available.

One should always keep a good credit utilization ratio, and it should not exceed above 30% as it affects the overall credit health. So it would help if you balanced your credit utilization ratio so that you do not ruin your credit score.

7. The cycle of Credit Cards and Credit Score:

It is essential to understand the cycle of how your credit card impacts your credit score. These two factors decide your financial decisions and management of debt.

So you should always refrain from spending beyond the credit card limit and understand the overall cycle before getting your first credit card.

8. The Interest Rate:

When you are thinking about getting your first credit card, you are sure that you will pay the credit balance timely. But in some cases, you may carry the balance from one month to the next month.

In these cases, your bank may charge you interest following your credit card’s APR. The interest rate ranges between 30 to 40%, so it is best to go through the interest rate-related terms before getting your first credit card.

9. The Grace Period:

A grace period is a duration in which the card issuer doesn’t charge you any interest on the purchases you have made before the due date of the payment.

But if you fail to repay the amount by the end of the billing cycle of the following payment due date, you may get charged interest on the amount you have not paid before the due date. You should always pay the bill before the due date to avoid such charges.

10. Terms and Conditions:

Last but the most crucial part that you should not miss before getting your first credit card is to read the terms and conditions of the credit card thoroughly. Go through details such as the application fees, APR range rewards, and other significant information so that you can select the credit card wisely.


Getting your first credit card is indeed a huge milestone and an important task that can help you manage your finances wisely. Understand each detail of how the credit card works and go through the terms and conditions related to the credit card so that you can save money and build a good credit score. Overall it is best to know which kind of credit card works for you and is the most suited for your financial needs.

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