Reddit’s top tips for new credit card users

A credit card can be a powerful personal finance tool when used responsibly.

Key points

• Getting a credit card can be a smart way to learn how to manage your money while building up credit.
• The Reddit forums offer plenty of advice for new credit card users.

When used with care, credit cards can be a beneficial financial tool. You can use them to build your credit and learn how to manage your expenses responsibly.

Reddit is a great resource for new credit card users. You can learn about topics that are new to you while other users share their experiences and knowledge. There are many helpful personal finance resources on Reddit, including helpful credit card tips. Before you get your first credit card, make sure you’re ready. You may find the following tips for new credit card users helpful.

Pay your card balance in full

Reddit user MissPickleChips suggests new card users never carry a balance. She notes that just because you can wear a balance doesn’t mean it’s a good idea. You’ll be charged credit card interest if you don’t pay your balance in full each month, which can get expensive.

Only buy what you can afford

User pleiop recommends treating your credit card like a debit card. Only use your credit card to buy items you know you can afford. If you spend more than you can afford, you risk incurring credit card debt, which can quickly become a serious financial problem.

Aim for a card with no annual fee

Are you looking for credit card options? User gdq0 suggests giving priority to requesting a card with no annual fee. If you’re new to using credit cards, a card with no annual fee is the best and most affordable way to learn how to use a credit card responsibly.

Consider applying for a secured credit card

Reddit user GastonKobe recommends newbies apply for a secure card. If you’re new to credit cards and have little or no credit, applying for a secured credit card might be a good idea.

This is an ideal option if you are unlikely to be approved for an unsecured card with no annual fee. Keep in mind that secured credit cards require you to make a refundable deposit. Once approved and you make a deposit, you can spend up to the amount of your deposit.

You can show that you are responsible by making good spending and payment decisions. After a while, your card issuer may decide to upgrade your account to an unsecured credit card. If that’s not an option for the secured card you’re starting out with, you can always apply for an unsecured credit card at a later date.

Don’t rush to close your first credit card account

ToxicLogics suggests never closing your first credit card. It’s beneficial to have an older credit card on your credit report because your credit age makes up 15% of your FICO credit score.

If you get a no annual fee credit card as your first card, plan to keep that card in your wallet for many years. This will help you increase your credit age.

If you have a card with an annual fee, you can call your card issuer and request that this card be downgraded to a $0 card so that the account remains on your report.

If you’re new to using credit cards, that’s okay. We all have to start somewhere. The tips above can help you better plan for using your new credit card to build credit, avoid paying interest, and develop responsible credit card usage habits.

If you’re looking for your first credit card, check out our list of the best credit cards to help narrow down your options.