Basics of Credit Card for First Time Users

Basics of Credit Card for First Time Users
Credit Card for First Time Users

It is always exciting to be approved for your first credit card. It gives you the freedom to buy whatever you want, eat wherever you want, travel to places without actually having the required capital. Yes, we agree, it is fun and exciting to have a credit card, but before holding a credit card for the first time, there are a few basic things that a user should be aware of.

A: Having a stable income source

Credit card loans need to be paid back, so there should be a stable or predictable income. Having a credit card gives you the freedom to spend without having the required cash to do so. But, there is a monthly bill on the credit card that needs to be repaid. So, if a person doesn’t have a stable income source, then it will be difficult for them to pay the credit card dues.

B: Planning deposit for a secured credit card

First-time users lack the required credit score to apply for a regular or unsecured credit card, which doesn’t require a deposit. So, they need to depend on a secured card, for which they need to accumulate capital. Most secured credit cards offer a limit that is close to the deposit made. So if any person wants a higher limit on the secured credit card, then they must arrange the capital for it.

C: Choosing the correct credit card

Choosing the right credit card is very important. Plaata provides a platform where a person can choose from several credit card providers and select the best one for them. Several factors make one credit card better than the other. An individual should be very specific about their needs. If an individual has a large family and needs discounts on groceries, then they should look for a credit card that is partnered with many grocery outlets to avail discounts. So, choosing the right credit card is very important.

D: Clear credit card bill timely to avoid penalty

Credit cardholders can avoid interest charges by paying the amount due in full before the due date. Every credit card has a bill generating cycle. The bills are generated monthly, and there is a window by which the bill should be cleared. If bills are cleared on time, then there is no penalty charged. A credit cardholder should always try to clear the bill on time to avoid penalty charges.

E: Extract the maximum benefit from the credit card by learning effective ways of using it

There are several offers provided by credit card issuers. An individual should be clever enough to use the credit card in an optimum way to avail of all the offers. Constructive use can lead to huge savings. If there is an offer on essentials, then try to avail of the offer and save the essentials for future use.


The basics of credit cards are important. An individual who is planning to get a credit card should be well aware of the basics. Proper use of credit cards can be very economical. It is always advisable to use credit cards on online purchases, as they are safer than debit cards.