Getting your first credit card is almost like an achievement. A new-found sense of financial independence coupled with the fact that you are now a creditworthy earning member is a huge step towards attaining your financial goal. 

Cash crunches would no longer be a worry. You can ditch the worry of carrying cash around or constantly calculating your balance as now your purchases can be made with just a swipe.  

Whether it is about buying your loved ones gifts, celebrating festivals, shopping online, buying grocery, large purchase, or even an unprecedented emergency that might hit you off guard, you are prepared as your card has your back. 

According to a report by Economic Times, the credit card market is thus likely to grow at a compound annual growth rate of more than 25% in the year 2020-2025. This also means many banks and other financial institutions are entering this market and the healthy competition ensures that the customer gets the best deal.

Though this seems to be an ideal time to get your first credit card, it is important to be informed about certain factors. 


  • Annual/ Monthly Fees


As a newcomer to the market, you might probably not qualify for the premium or more attractive cards but that’s a destination you will reach. Initially, the cards may come with an annual or monthly fee depending on your credit card application.


  • Avoid Interest Rate


  • You can and should completely avoid interest rates. Banks such as RBL Bank offer competitive rates and have you covered in case you wish to defer your payment
  • By and large, you must try and pay your dues in time. This is advisable as you may still manage a lower interest rate however your credit score might get adversely affected


  • Credit Score
  • Ensure that you have analyzed and evaluated your cash flows and aligned them with your card payment. Never default on a payment. Always try and pay more than the minimum amount.
  • Your credit score is the true reflection of your financial health and credibility. You must always stay committed to having a high and respectable credit score


  • Rewards and Offers


  • Credit cards are a delight for consumers who understand and are aware of the offers and rewards their cards have to offer. Be informed about what your card can offer
  • Have a detailed discussion with the bank representative and choose a card that is best suited for your interest, professions, and the kind of expenditure you make
  • For instance, private banks such as RBL Bank offer more than 40 types of credit cards and thus you have a wide variety to choose from


  • Credit Limit


  • Try to research the market for an aggressive creditor. This would mean that you have a higher credit limit. The credit limit is the highest amount that you will be allowed to spend on your card in one billing cycle.
  • The closer you go to your limit, the more your credit score would get affected. Hence, try to always limit your expenses within the assigned credit limit.
  • You may always try and revise your credit limit over time. Based on your overall performance and dealing, your creditor would entertain this request.

The bottom line is that credit cards are extremely user friendly and allow you to invest and save your cash. However, you must deal with your first credit card with honesty, integrity, and a certain sense of financial intelligence. Be careful and cautious with your expenses and credit cards would become your best buddy!

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