Credit Card 101: 5 Tips to Use Your First Card Responsibly

Finally, you managed to get your first credit card!

*Screams with happiness*

Credit cards can be a convenient and valuable tool for managing your finances, but they can also be a double-edged sword if not used responsibly. For first-time credit card users, it's essential to understand the basics and the potential pitfalls to avoid.

So, here are 5 crucial things to take note of and NOT to do when using your first credit card, to ensure that you build a strong financial foundation and avoid getting into debt.

1. Don't overspend: Just because you have a credit card, it doesn't mean you should spend beyond your means. Make sure you budget your expenses and only use your credit card for things you can afford to pay off.
2. Pay on time: One of the most important things you can do with a credit card is to pay your bill on time. Late payments can hurt your credit score and lead to high fees. This also affects your interest rate when you want to get a loan for car or even house in the future.
3. Avoid carrying a balance: While it's important to pay your bill on time, it's also important to pay your balance in full each month. Carrying a balance can lead to high interest charges and debt that can be difficult to pay off.
4. Monitor your account: Make sure you keep track of your credit card transactions and check your account regularly for any unauthorised charges. This will help you catch any potential fraud or errors early on.
5. Don't share your card: Your credit card is yours alone, so don't lend it to anyone or allow others to use it. This can not only put you at risk of fraud, but it can also damage your credit score if the other person misuses the card.

If ever you're looking to apply for MORE credit card, do checkout iMoney or RinggitPlus to compare and find the one that suits you - Cashback, Rewards, Petrol, Groceries, etc.

Oh, I always use credit card for EVERYTHING - Petrol, Dining, Online, Shopping, etc instead of paying with CASH. Why? You can use it to build credit history for bigger purchases like car or home. Also, many credit cards offer rewards and cashback programs which in return, help you save money on everyday purchases.