During the majority of my 20 years, I swore credit cards. I used my debit card for everything and thought I was being intelligent. Credit cards seemed risky: what if He lost a payment? What happens if I got stuck with great interest? What if I I chose the wrong card And he regretted it forever?
He felt safer to stick to what he knew. With a debit card, I could clearly see the money leaving my account, without surprises and there are no fear bills at the end of the month. I finally realized that I was missing.
If you have been avoiding credit cards for the same reasons, this is what changed your mind, how I chose my first card and what I have learned since then.
Related: The best first credit cards for beginners
Why I avoided credit cards
Like many people, I associated debt credit cards. He had heard horror stories of high interest rates, breaching the payment ball payments and balances. My biggest concerns were reduced to three things: paying endless interests due to high Annual percentage ratesFeeling tied to a card once I chose one and spend money that I didn’t really have.
Related: Do you apply if you pay your balance on time?
Although these fears were not completely unfounded, they also stopped me. By avoiding credit cards completely, I lost credit creation and the use of financial tools that could really work in my favor.
What changed your mind about credit cards
Once I began to dig deeper, I realized that credit cards are not traps if you use them in a responsible manner. Instead, they can be powerful financial tools. Managed well, credit cards are actually one of the most valuable tools of their financial life.
To start, fraud protection is much stronger than with a debit card. Yes The credit card is compromisedYou can play the position before the money once leaves your account. Then there is the credit history: without it, you will have difficulty obtaining the approval of a loan for car, mortgage or even a lease of apartments. Using a card in a responsible way is one of the easiest ways to start building that history.
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Related: How (and when) play a credit card charge
And the benefits do not stop there. Credit cards offer rewards that debit cards simply cannot match – from refund and travel points to Welcome bonds That can cover a flight from the door.
Many letters also include Purchase protectionextended guarantees, travel delay coverage And even Rental insurance. Using credit wisely save money.
The greatest mental change for me was to realize that interest does not matter if it never carries a balance. When you set automatic payments and just spend what I already have in my checking account, I use my card as a debit card with additional advantages.
Suddenly, the “trap” that feared to become a safety network, and a springboard towards better financial products in the future.
How I chose my first credit card
When I was ready for my first card, I wanted something versatile, friendly for beginners and rewarding. I chose the CHASE SAPPHIRE PREFERRED® card (see rates and rates) Because it has a reasonable annual rate of $ 95, strong travel protections and points that can be exchanged for trip or cash reimbursement.
For anyone who chooses their first card, the key is to match it with its objectives: a cash return card without an annual simplicity rate, a travel rewards card if you want points or a safe card if you are only building credit. Choosing the correct card establishes it to maximize the value you get when establishing healthy credit habits.
Related: Credit Cards 101: The Beginner Guide
Should you get a credit card?
Decide if it’s time for your first credit card depends on your habits and objectives. A card can be an incredibly useful tool, but only if it is ready to handle it in a responsible manner. Here are some questions to ask:
- Can I pay my invoices on time, every time?
- Do I trust myself not to spend too much?
- What do I want to win?
- Do I feel comfortable monitoring the expiration dates?
Related: Credit cards vs. Debit: What is the most intelligent choice?
Tips for your first card
If you are ready to request your first credit card, some simple habits can configure it for success from day one.
- Treat it as a debit card: Just spend what you already have in your checking account, so that you do not accumulate a balance that you cannot pay.
- Configure Autopay: Schedule automatic payments for your full statement balance every month so that an expiration date is never lost or paying interest.
- Start with a rewards card for beginners: Look for one with an annual modest (or none) rate and a direct rewards structure that facilitates the value without feeling overwhelmed.
- Verify your first credit score: Knowing where you are can help you request a card for which you are most likely to qualify, avoid your unnecessary credit.
- Give yourself to build good habits: Pay on time, keep the balance low and monitor your statements contribute to a healthy credit history.
Related: 5 errors to avoid when you get your first credit card
End
I spent years avoiding credit cards because I was afraid of what could go wrong. But once I learned how they work, and how much they can benefit me when they are used in a responsible way, I realized that I had been lost.
Now, my card is one of the most valuable tools in my financial tool kit. And the best part? I still have the peace of mind that I used to have with a debit card. Only now I’m also generating credit, protecting my money and earning rewards on the road.
Related: How to request a credit card
