For most of my 20s, I took the oath of credit cards. I use my debit card for everything and think I’m smart. Credit cards seem to have risks: What if I missed the payment? What if I am trapped by high interest? What if I choose the wrong card and always regret it?
It feels safer to stick to what I know. With the debit card, I can clearly see the money leaving my account–no surprises at the end of the month, nor horrible bills. I eventually realized that I missed it.
If you have been avoiding credit cards for the same reason, then that’s why I changed my mind, how to choose the first card and what I’ve learned since then.
Related: The best first credit card for beginners
Why I avoid credit cards
Like many people, I associate credit cards with debt. I heard horror stories of high interest rates, defaulting on payments and snowballing balances. My biggest concern boils down to three things: paying endless interest due to the percentage of age, once I choose one, it is tied to the card and spending money I don’t actually have.
Related: If you pay your balance on time, is APR important?
Although these fears are not completely unfounded, they also stopped me. By avoiding credit cards altogether, I missed building credits and used financial tools that actually worked in my favor.
What changed my thoughts on credit cards
Once I started digging deeper, I realized that if you use your credit card responsibly, you wouldn’t be in a dilemma. Instead, they can be powerful financial tools. Well managed, credit cards are actually one of the most valuable tools in your financial life.
For beginners, fraud protection is far more powerful than debit cards. If your credit card is compromised, you can object to the fee before the money leaves your account. Then there is the credit history: without it, you will have a hard time getting approval for a car loan, mortgage or even apartment rental. Using cards responsibly is one of the easiest ways to start building that track record.
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Related: How (When) to file a credit card fee
The benefits don’t stop there. Credit cards offer rewards, debit cards simply can’t match – from cash back and travel points to bonuses that can cover the gate plane.
Many cards also include purchase protection, extended warranty, travel delay coverage and even rental car insurance. Using credit wisely can save you money.
For me, the biggest mentality change is realizing that interest doesn’t matter if you never keep balanced. By setting up automatic payments and spending only what I spend in my checking account, I will use a debit card and a debit card with extra privileges.
Suddenly, the “trap” I feared became a safety net and a stepping stone towards better financial products.
How do I choose my first credit card
When I prepare my first card, I want something versatile, beginner friendly and meaningful. I chose Chase Sapphire Priority® Card (See rates and fees) as it has a reasonable $95 annual fee, strong travel protections, and points for redeemed travel or cashback.
For anyone who chooses the first card, the key is to match it to your goal: a cash reserve card with no annual fee, if you want points, no annual fee, a travel reward card, or if you just build a credit line. Choosing the right card allows you to maximize the value you get while building healthy credit habits.
Related: Credit Card 101: A Beginner’s Guide
Should you get a credit card?
Determining whether your first credit card should depend on your habits and goals. A card can be a very useful tool, but only if you are ready to handle it responsibly. Here are a few questions to ask yourself:
- Can I pay my bills on time every time?
- Do I believe I should not overspending?
- What do I want to get?
- Will I keep track of the expiration date?
Related: Credit Cards vs. Debit Cards: Which Smarter Choice?
Tips for the first card
If you are ready to apply for your first credit card, some simple habits can provide you with success from day one.
- Treat it like a debit card: Spend only what you already have in your checking account, so you won’t get a balance that you can’t repay.
- Set up automatic sales: Schedule full statement balance payments for each month to avoid missing due dates or payment interest.
- Start with a beginner-friendly reward card: Looking for a moderate annual fee (or no at all) and a direct reward structure that makes it easy to get value without feeling overwhelmed.
- First check your credit score: Knowing your position can help you apply for cards that are more likely to qualify and avoid unnecessary efforts.
- Focus on developing good habits: Pay on time, keep balance low and monitor your statements, which will help with a healthy credit history.
Related: 5 Errors to Avoid when Getting Your First Credit Card
Bottom line
I spent years avoiding credit cards because I was worried about problems. But once I understand how they actually work – how much they can benefit me when used responsibly – I realize I’ve missed it.
Now, my card is one of the most valuable tools in my financial tool suite. The best part? I still give me peace of mind that I once had a debit card. Until now, I have also been building credibility, protecting my money and getting rewards in the process.
Related: How to apply for a credit card
