What you should know before getting the first credit card

Getting your first credit card might feel like a milestone. You’re officially adulting, ready to tap-and-pay your way through life. But while the glossy bank brochures and sales phone calls make it sound like free money, that little piece of plastic comes with more fine print than we might know.

Your first credit card isn’t free money, here’s what to know

Most of us get their first card just after landing a job. At which point, our knowledge of interest rates, billing cycles, or credit scores is probably zero. You swipe, you pay the minimum due (if at all), and assume it’s all fine. Until one month turns into three, and the bill triples quietly under your nose.

What no one really tells you is that interest on unpaid dues stack up brutally. Missing a due date by even a day can invite late fees, and paying just the minimum amount keeps you stuck in a debt loop. And if you’re using multiple cards, it’s easy to lose track of who you owe and how much.

Then there’s the myth of ‘just building a credit score’. Sure, using a card helps with that, only if you use it responsibly. But maxing out your limit regularly, or carrying forward balances, does the exact opposite. Credit utilisation matters. So does timely payment. You learn that too late, usually after getting rejected for a loan or watching your CIBIL score nosedive to rock bottom.

Another surprise? Rewards points aren’t always rewarding. You spend INR 1,000 to earn one point, and it takes 10,000 points to get a INR 500 voucher. That math never really adds up unless you’re a frequent flyer or a high spender. Those cashback schemes you saw on ads? Often valid only for the first month or on purchases you don’t actually make.

What helps is having someone explain how billing cycles work, how to set up auto-pay for the full amount, and how to pick a card with no annual fee. That information is rarely part of the onboarding.

In hindsight, your first card should teach you discipline not regret. It should feel like a financial tool, not a trap. But that only happens when you walk in with your eyes open, not just dazzled by credit limits and the allure of plastic money.

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