Beginner’s Guide to Your First Credit Card

Getting your first credit card is an exciting step toward financial independence. It could help you build credit, develop responsible money habits, and prepare for bigger financial goals down the road, such as buying a car or even a home. But it’s important to understand how credit cards work and how to use them wisely so you can enjoy the benefits without falling into debt. 

Here’s what every first-time cardholder should know.

Why Your First Credit Card Matters

A credit card is more than just a way to pay for purchases; it’s a powerful tool for building your credit history. Wondering why that’s important? Credit is the ability to borrow money or access goods and services with the promise to repay later.  Your credit history, therefore, will become a key factor in helping you qualify for loans down the line, including auto loans, personal loans and mortgages. One of the simplest ways to start building credit history is with a credit card. 

When used responsibly, a credit card could show lenders that you are able to borrow money and pay it back on time. This may affect your credit score, which is a key factor in trying to get approved for those aforementioned loans, and perhaps even securing a job.

Best Practices for Using Your First Credit Card

To get the most from your first card while avoiding common pitfalls, here are some key tips:

Always Make On-Time Payments

Payment history accounts for 35% of your credit score, making it one of the most critical factors in your credit score. Even a single late payment could damage your credit score for months, so set up automatic payments or calendar reminders to ensure you never miss a due date.

Pay in Full Monthly, If You Can

Paying your balance in full each month helps you avoid interest charges and keeps your debt under control.

Maintain Low Credit Utilization

This means using only a small portion of your available credit—ideally under 30%. For example, if your credit limit is $1,000, try not to carry a balance higher than $300.

Create and Stick to a Budget

Credit cards can make spending feel effortless, but treat your card like cash. Only charge purchases you can afford to pay off immediately, and track your spending to stay within your predetermined budget.

Monitor Your Statements Regularly

Review your monthly statements thoroughly to track spending patterns, verify charges, and catch any unauthorized transactions quickly. This habit also helps you stay aware of your credit utilization throughout the month.

How to Choose the Right First Credit Card

When picking your first credit card, look for one designed with beginners in mind. You’ll want a card with:

If you’re ready to start building credit, the Visa® Everyday Credit Card from Service Credit Union is a smart choice. This card offers a low variable APR, no annual fee*, and essential features like emergency assistance services. It’s a safe, supportive way to build your credit history while learning how to manage credit responsibly. You can even get an Everyday Starter credit card, which has a lower spending limit and is tailored to those just starting out. 

Opening your first credit card is a big step, but with the right card and a few smart habits, you can set yourself up for long-term financial success.