Reddit’s Best Tips for New Credit Card Users

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Credit cards can be powerful personal finance tools when used responsibly.

Key Point

• Getting a credit card is a smart way to learn how to manage your money while building credit.
• Reddit forums offer a lot of advice for new credit card users.

If used carefully, credit cards can be a profitable financial tool. You can use them to build credit and learn how to manage your spending responsibly.

Reddit is a great resource for new credit card users. You can learn about topics that are new to you as others share their experiences and knowledge. Reddit is full of helpful personal finance resources, including helpful credit card advice. 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 the card balance in full

Reddit user MissPickleChips suggests that new card users don’t carry around balances. She points out that just because you can balance it doesn’t mean it’s a good idea: If you don’t pay your balance in full each month, credit interest on her card will be charged, making it expensive. may become.

buy as much as you can

User pleiop recommends treating credit cards like debit cards. Only use your credit card to purchase items that you know you can buy. Spending more than you can pay can put you in credit card debt. This can quickly become a serious financial problem.

Get a no annual fee card

Researching credit card options? User gdq0 suggests prioritizing applying for a card with no annual fee. If you’re new to credit cards, a no annual fee card is the best and affordable way to learn how to use credit cards responsibly.

Consider applying for a secure credit card

Reddit user GastonKobe advises newbies to apply for a secure card. If you are new to credit cards and have little or no credit, we recommend applying for a secure credit card.

This is an ideal option when a no annual fee unsecured card is unlikely to be accepted. Please note that a secure credit card requires a refundable deposit. Once you are approved and make a deposit, you can use up to the deposited amount.

You can show that you are responsible by making good spending and payment decisions. After some time, your card issuer may decide to upgrade your account to an insecure credit card. You can always apply for an unsecured credit card later if it’s not the secure card option you originally used.

Don’t rush to close your first credit card account

ToxicLogics recommends not canceling your first credit card. Credit validity accounts for 15% of your FICO credit score, so showing your old credit card on your credit report is beneficial.

If you’re getting a no annual fee credit card as your first card, plan to keep that card in your wallet for years. By doing this, you can increase your credit age.

If you got a card with an annual fee, you can call your card issuer and ask them to downgrade the card to a $0 fee card and keep your account on report.

It’s okay if you’re new to credit cards. We all have to start somewhere. The tips above will help you better plan how to use your new credit card to build your credit, avoid paying interest, and develop responsible credit card habits.

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