Credit cards can be a mysterious financial instrument if you are unsure what their use really is. In fact, credit cards have benefits for both consumers and retailers. Consumers are given a line of credit (amount they can spend) and an easy way to spend online as well as in person. Retailers are given a guaranteed way to collect the money from the customer even if they do not yet have the money they are spending. It is guaranteed for the retailer because the credit company will provide the payment and then takes care of collecting payment from their card customers.

Personally I love using credit if it is used responsibly. I do not use it for debt, meaning I always pay my bill in full at the end of the month. I have different cards for different types of expenses so when I log into different accounts it is easy to tell how much I have been spending on restaurants or gifts, for example. I also highly recommend getting a no fee rewards card since it is like getting free money back for the spending that you already do anyway. Another great use for credit cards is if you make many purchases per day and do not want to incur debit charges with each transaction, which can really add up throughout a day or a month. By putting all of your small everyday purchases onto the credit card it allows you to pay the total amount in one lump sum at the end of each month from your checking account. Just be sure that you are hyper aware of how much money you have available for spending in your checking account before you go spending more than you have on your credit card(s). This will take some getting used to but is very simple with time.

Having and using a credit card is also good for building your credit score, which will be very useful when the day comes that you decide to buy a house. Again, just make sure that you use the card properly and do not take on mountains of debt otherwise you are not getting the greatest benefit from using your credit card. The credit card itself makes it easy to pay for purchases quickly by using the tap method and of course the rewards programs that the cards offer just for spending are of great value as well.

For your first credit card I would recommend getting it through your bank for ease of tracking your spending and paying your bill. Once you become more experienced you can look at getting all types of different cards available from different companies that offer specific rewards that are catered to you.

If you have more questions about your first credit card feel free to send our team a comment and we will be glad to help you out.

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