How to Use a Credit Card for the First Time

With the rapidly evolving world, credit cards have become an integral part of everyone’s life. Before applying for your first credit card, you should consider learning how to use a credit card for the first time. The process is quite simple if you know what a credit card is and how it works.

Getting a credit card and using it responsibly can help you: 

  • Build your credit history 
  • Improve your financial health

As a first-time user, it’s important to understand both how to obtain a credit card and how to manage it properly. 

How to Get Your First Credit Card?

Follow the steps below to ensure that you have correctly assessed the situation in order to make an informed decision:

  • Understand Your Affordability

While choosing a card, you must know the amount you can spend. This way, you do not end up signing up for a credit card you can’t maintain. Look at the joining fees and the annual charges to understand whether you can maintain the credit card. If you think the charges are too high for you, start with a lifetime-free credit card.

  • Pick Your Credit Card Issuer

You can find credit card companies and brands (in collaboration) offering a credit card. First, consider your financial situation. Based on that, pick your credit card issuer. Moreover, you also need to consider the annual charges and the joining fees mentioned by your issuer.

  • Learn about the Eligibility Criteria

Next, you will have to see whether you meet the eligibility criteria set by the credit card issuer. This will help you understand whether your application will be approved or not. In most cases, the eligibility criteria should meet the following parameters:

  • Your credit score should be above 750
  • You should be more than 21 years old
  • You must have a stable income
  • You should be a resident of India
  • Find out What Are the Required Documents

Next, find out which documents are required to be submitted along with your credit card application. Documentation is a mandatory process; you need to submit documents like your address proof, your ID and income proof. Gather these documents and get them ready to apply for your credit card.

  • Start the Application Process

After you have completed the aforementioned steps, you can initiate the application process. You can choose to submit your application either online or offline. For online processes, follow these steps:

  • Visit your bank’s website 
  • Find the form and 
  • Fill out the application
  • Submit the required documents along with the application
  • On approval, you will get the credit card delivered to your registered address

In case you prefer the offline process, these are the steps:

  • Visit the bank’s branch
  • Ask any representative for the application form
  • Fill out the form and submit your documents along with it
  • On approval, you will get the credit card delivered to your registered address

How to Use Your Credit Card for the First Time?

Once you receive the credit card, you can start using it upon activation. Follow the steps below to start making purchases on your card:

  • Activating Your Card

The process of activating can also be done online or offline. If you prefer the offline option, visit the bank’s branch and ask for help to activate your card. You can also activate your credit card by visiting an ATM and following the prompts. However, if you prefer the online option, you can use internet banking or mobile banking to activate your credit card.

  • Using Your Card

Learning how to use a credit card for the first time is very simple. After you have activated your card, go online and make a purchase with your card. For that, you’ll need to share your card number, add the expiry date and CVV and use the PIN to make the online transaction. For a physical purchase, swipe or tap your card and type in the PIN.

Tips to Manage Your First Credit Card

Everything boils down to one thing: how to manage your credit card. For that, here are a few tips you can keep in mind:

  • Keep Credit Utilisation Ratio Low

Keep your credit utilisation ratio within 30%. This means using only 30% of your credit card limit each month.

  • Make Timely Payments

Pay your bills on time. Credit cards come with a grace period – try to utilise this period but make a total payment of your bills.

  • Pay More Than the Minimum Due

Avoid paying the minimum due because the balance amount on your credit card will start attracting heavy interest.

  • Use Cash Advances in Dire Situations

Avoid using cash advances; getting access to cash is a great way to access funds in need, but it also incurs a high interest rate.

  • Avoid Inactive Charges

Use your credit card regularly and mindfully to ensure that your credit card does not attract inactivity fees.

As a credit card beginner, it may be confusing to choose a card that aligns with your financial goals and offers benefits that suit your lifestyle. Different cards come with different perks, so evaluate your spending habits and choose a card that provides the most value for you.

To start enjoying the benefits of using a credit card, from fuel surcharge waivers to seasonal deals and discount, try the One Credit Card. This card comes with a powerful app, the OneCard App, which makes it easier for you to track your monthly expenses and sends you notifications when you are about to cross your set budget limits. It also helps pay recurring bills on time without fail. To start your credit card journey, apply now.

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