Using a credit card for the first time can be both an exciting and daunting experience. Having the ability to make purchases with a card instead of cash is a privilege and comes with a lot of responsibility. It’s important to understand the do’s and don’ts of using your first credit card so that you can make smart financial decisions and stay on top of your spending. Here are some tips you should follow for using your first credit card. 

Understand How Credit Works 

When you apply for your first credit card, the lender will take a look at your credit score and other factors to determine whether or not you’re eligible. The higher your score, the more likely it is that you’ll get approved. That said, having a good credit score doesn’t guarantee approval. Your credit score is also affected by how you use your credit card. For example, if you consistently make payments on time, it can have a positive impact on your credit score. 

It’s also important to remember that when you use your credit card, you are borrowing money from the lender, which must be paid back in full each month. If you don’t pay off the balance in full, you’ll accrue interest charges and it could hurt your credit score.

Use Your Credit Card Wisely 

Once you get a credit card, you may be inclined to start using it right away. However, it’s important that you only use it for certain purchases. For example, you can use it for smaller purchases such as gas or groceries. With larger purchases like vacations or buying furniture, it can help you spread out payments over a long time. It’s key to remember that you should always stick to your budget and avoid buying anything that you can’t afford. If you’re not able to make timely payments, you’ll hurt your credit score and can quickly start accumulating debt. 

Don’t Max Out Your Credit Card Limit 

Maxing out your credit limit can have serious consequences for your credit score. When you use your credit card up to its maximum limit, it shows lenders that you may not be able to manage your finances well. This can result in a lower credit score which could prevent you from getting approved for loans or other forms of financing.

Before making a purchase, take a moment to check what your available credit limit is and if the purchase would bring you close to or over the limit. Check your account regularly to see where you stand with your current balance and make sure that you’re not using more than what you can afford to pay off.

Choose KOIN as Your Faith-Based Credit Union 

At Koin Credit Union, we meet people where they are with modern and refreshing financial solutions while remaining grounded in our focus on serving Christ and His growing kingdom. We have your best interests in mind and will help you choose the best credit card for you and your unique financial situation. 

You can rest easy knowing we handle your finances with transparency and integrity, as stewards of Christ. And you can be proud knowing you’re accomplishing your goals while helping others do the same. 

Contact us today to learn more.