The Decision
A credit card lets you spend borrowed money. Before choosing your first one, check the costs and whether you can pay the full bill on time.
Check Before You Proceed
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Read joining and annual fees. If a fee waiver needs a certain amount of spending, don't spend extra just to qualify.
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Check interest, late fees and the rules for interest-free purchases. Paying the minimum leaves most of the bill unpaid and can mean interest.
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Treat the credit limit as a borrowing limit. Decide what you can repay from your usual income, regardless of what the card allows.
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Check the statement date, due date and payment process. Leave enough time for your payment to reach the card issuer.
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Compare rewards with fees and conditions. Applying for several cards close together can create multiple credit checks and affect your score.
Common Traps
Choosing for a welcome gift. Treating the limit as extra income. Assuming a lifetime-free card means free borrowing, or that minimum payments stop interest from adding up.
Pause If...
You expect to leave bills partly unpaid, need the card to cover a regular shortage of money, or don't understand how repayment works.
Never Ignore
A minimum payment may prevent an overdue payment, but it doesn't clear your debt. Interest can keep adding to the unpaid balance.
Final Reminder
The full bill should fit your income, not just the minimum payment.