Never spend \u20b91 just to earn a few paise or points back.<\/strong><\/p>\n\n\n\nThe best rewards strategy is to put your existing expenses<\/strong> on the card that rewards those expenses well.<\/p>\n\n\n\n9. Understand reward exclusions<\/h2>\n\n\n\n
One of the most common mistakes beginners make is assuming that every transaction earns the advertised reward rate.<\/p>\n\n\n\n
Credit cards often have exclusions, caps, minimum transaction requirements, merchant-category restrictions, or special rules for certain types of transactions.<\/p>\n\n\n\n
For example, a card might advertise a high reward rate but:<\/p>\n\n\n\n
\n- Cap rewards at a certain monthly amount<\/li>\n\n\n\n
- Exclude certain categories<\/li>\n\n\n\n
- Offer accelerated rewards only on selected merchants<\/li>\n\n\n\n
- Give different rewards depending on how you pay<\/li>\n\n\n\n
- Have separate rules for online and offline transactions<\/li>\n<\/ul>\n\n\n\n
Before relying on a card for a particular expense, check its current terms.<\/p>\n\n\n\n
10. Be careful with EMI conversions<\/h2>\n\n\n\n
“Easy EMI” can make an expensive purchase feel much more affordable.<\/p>\n\n\n\n
But EMI does not necessarily mean interest-free.<\/p>\n\n\n\n
Depending on the offer, you may have:<\/p>\n\n\n\n
\n- Interest<\/li>\n\n\n\n
- Processing fees<\/li>\n\n\n\n
- GST on applicable charges<\/li>\n\n\n\n
- Foreclosure charges<\/li>\n\n\n\n
- Lost reward points<\/li>\n\n\n\n
- Other terms that affect the effective cost<\/li>\n<\/ul>\n\n\n\n
Always compare the total amount you’ll pay under EMI<\/strong> with the price of paying upfront.<\/p>\n\n\n\nIf you can comfortably afford a purchase without EMI, don’t automatically convert it just because the option is available.<\/p>\n\n\n\n
11. Avoid cash withdrawals from your credit card<\/h2>\n\n\n\n
Credit card cash withdrawals should be a last resort.<\/strong> Unlike regular purchases, cash advances typically attract a cash withdrawal fee and interest from the day of withdrawal itself<\/strong>. There is usually no interest-free period.<\/p>\n\n\n\nYou may also have to pay GST on applicable fees and interest<\/strong>, along with other charges depending on your issuer.<\/p>\n\n\n\nA \u20b910,000 cash withdrawal can therefore cost significantly more than \u20b910,000 if not repaid immediately.<\/p>\n\n\n\n
Use your credit card for purchases, not as an ATM, unless it is a genuine emergency.<\/strong><\/p>\n\n\n\n12. Don’t apply for too many cards at once<\/h2>\n\n\n\n
Once you discover the world of credit card rewards, it can be tempting to apply for every card that looks interesting.<\/p>\n\n\n\n
That’s usually not a good strategy for a beginner.<\/p>\n\n\n\n
Credit card applications can involve credit bureau enquiries, and having multiple new accounts in a short period may make your credit profile look different from someone who has maintained a stable credit history.<\/p>\n\n\n\n
More importantly, having several cards means:<\/p>\n\n\n\n
\n- More due dates<\/li>\n\n\n\n
- More statements<\/li>\n\n\n\n
- More fees to track<\/li>\n\n\n\n
- More reward programmes to understand<\/li>\n\n\n\n
- Greater risk of losing track of spending<\/li>\n<\/ul>\n\n\n\n
Start with one card. Learn how it works. Add another only when you have a clear reason to do so.<\/p>\n\n\n\n
13. Use your card for regular expenses<\/h2>\n\n\n\n
You don’t need to manufacture spending to build a credit history.<\/p>\n\n\n\n
Your normal expenses can be enough.<\/p>\n\n\n\n
For example:<\/p>\n\n\n\n
\n- Groceries<\/li>\n\n\n\n
- Online purchases<\/li>\n\n\n\n
- Utility bills<\/li>\n\n\n\n
- Fuel<\/li>\n\n\n\n
- Dining<\/li>\n\n\n\n
- Subscriptions<\/li>\n\n\n\n
- Travel<\/li>\n<\/ul>\n\n\n\n
Put expenses you were already going to make on your card, then pay the statement in full.<\/p>\n\n\n\n
Over time, this creates a consistent record of using and repaying credit responsibly.<\/p>\n\n\n\n
14. Don’t close your first card unnecessarily<\/h2>\n\n\n\n
Your first credit card can become useful over time, particularly as it contributes to the history of your credit accounts.<\/p>\n\n\n\n
If you later get better cards, don’t automatically close your older card without considering the consequences.<\/p>\n\n\n\n
Before closing a card, check:<\/p>\n\n\n\n
\n- Whether it has an annual fee<\/li>\n\n\n\n
- Whether it can be converted to a lifetime-free variant<\/li>\n\n\n\n
- Whether you can downgrade it to another card<\/li>\n\n\n\n
- How closing it could affect your overall available credit<\/li>\n\n\n\n
- Whether there are unused rewards that need to be redeemed<\/li>\n<\/ul>\n\n\n\n
If the card is lifetime-free and otherwise harmless to keep, there may be little reason to close it simply because you’ve acquired another card.<\/p>\n\n\n\n
15. Protect your card details<\/h2>\n\n\n\n
Credit card fraud doesn’t always require someone to physically steal your card.<\/p>\n\n\n\n
Never share:<\/p>\n\n\n\n
\n- CVV<\/li>\n\n\n\n
- PIN<\/li>\n\n\n\n
- OTP<\/li>\n\n\n\n
- Internet banking credentials<\/li>\n\n\n\n
- Card passwords<\/li>\n<\/ul>\n\n\n\n
Banks will not require you to disclose an OTP or PIN to “cancel” a transaction.<\/p>\n\n\n\n
You should also be cautious about entering card details on unfamiliar websites.<\/p>\n\n\n\n
If your issuer provides controls for online, international or contactless transactions, use them according to your needs.<\/p>\n\n\n\n
16. Don’t ignore small transactions<\/h2>\n\n\n\n
Fraudsters sometimes test stolen card details with a small transaction before attempting larger purchases.<\/p>\n\n\n\n
So don’t assume a \u20b950 or \u20b9100 transaction is automatically harmless.<\/p>\n\n\n\n
If you see a transaction you don’t recognize, investigate it.<\/p>\n\n\n\n
Getting into the habit of reviewing your statement and transaction notifications makes unusual activity much easier to spot.<\/p>\n\n\n\n
17. Understand how your credit score works<\/h2>\n\n\n\n
Your credit score isn’t simply a measure of how much money you earn.<\/p>\n\n\n\n
Credit bureaus evaluate information from your credit history, and different bureaus can produce different scores because they use their own scoring models, data and weightages.<\/p>\n\n\n\n
In India, CIBIL is one of the major credit bureaus and its score is widely used by lenders, but it isn’t the only credit bureau.<\/p>\n\n\n\n
Your credit history can include things such as:<\/p>\n\n\n\n
\n- Repayment behaviour<\/li>\n\n\n\n
- Credit utilisation<\/li>\n\n\n\n
- Length of credit history<\/li>\n\n\n\n
- Number and type of credit accounts<\/li>\n\n\n\n
- Recent credit enquiries<\/li>\n\n\n\n
- Outstanding balances<\/li>\n<\/ul>\n\n\n\n
The most important takeaway for a new cardholder is simple:<\/p>\n\n\n\n
Borrow responsibly and pay on time.<\/strong><\/p>\n\n\n\nYou don’t need to constantly manipulate your credit score.<\/p>\n\n\n\n
18. Check your credit report periodically<\/h2>\n\n\n\n
Your credit score is only one part of the picture.<\/p>\n\n\n\n
Your credit report contains the underlying information used to calculate your score.<\/p>\n\n\n\n
Check it periodically for errors such as:<\/p>\n\n\n\n
\n- Accounts that don’t belong to you<\/li>\n\n\n\n
- Incorrect payment status<\/li>\n\n\n\n
- Incorrect outstanding balances<\/li>\n\n\n\n
- Duplicate accounts<\/li>\n\n\n\n
- Incorrect personal information<\/li>\n\n\n\n
- Credit enquiries you don’t recognize<\/li>\n<\/ul>\n\n\n\n
If something is incorrect, raise a dispute with the relevant credit bureau and\/or lender.<\/p>\n\n\n\n
Finding an error early is much better than discovering it when you’re applying for an important loan.<\/p>\n\n\n\n
19. Don’t carry a balance just to “build your credit score”<\/h2>\n\n\n\n
This is a common misconception.<\/p>\n\n\n\n
You don’t need to deliberately leave an unpaid balance on your credit card to build credit.<\/p>\n\n\n\n
Carrying a balance generally means paying interest. If you can pay your statement in full, that’s usually the better financial choice.<\/p>\n\n\n\n
Using credit responsibly and repaying it is what matters\u2014not paying interest for the sake of having a credit history.<\/strong><\/p>\n\n\n\n20. Create a simple monthly credit-card routine<\/h2>\n\n\n\n
You don’t need a complicated spreadsheet to manage your first credit card.<\/p>\n\n\n\n
A simple routine works:<\/p>\n\n\n\n
i) Once a week<\/h3>\n\n\n\n
Check your recent transactions.<\/p>\n\n\n\n
ii) When your statement is generated<\/h3>\n\n\n\n
Review the statement and total amount due.<\/p>\n\n\n\n
iii) Before the due date<\/h3>\n\n\n\n
Make sure enough money is available in your bank account.<\/p>\n\n\n\n
iv) Every month<\/h3>\n\n\n\n
Pay the total amount due in full.<\/p>\n\n\n\n
v) Every few months<\/h3>\n\n\n\n
Review whether the card is still suitable for your spending.<\/p>\n\n\n\n
vi) Periodically<\/h3>\n\n\n\n
Check your credit report for errors.<\/p>\n\n\n\n
These small habits can prevent most common beginner mistakes.<\/p>\n\n\n\n
FAQ<\/h2>\n\n\n\n
\n
\n
Is it good to pay the credit card bill in full every month?<\/h3>\n\n\n
Yes. Paying the total amount due in full helps you avoid carrying a balance and potentially paying interest on it. It is one of the most important habits for a new credit card user.<\/p>\n\n<\/div>\n<\/div>\n
\n
Should I pay the minimum amount due or the total amount?<\/h3>\n\n\n
The minimum amount keeps the account from being treated as completely unpaid, but it isn’t the ideal payment strategy. Whenever possible, pay the total amount due<\/strong> by the due date.<\/p>\n\n<\/div>\n<\/div>\n\n
Does carrying a balance improve my credit score?<\/h3>\n\n\n
No. You don’t need to carry an unpaid balance or pay interest to build a credit history. Responsible usage and timely repayments are more important.<\/p>\n\n<\/div>\n<\/div>\n
\n
How much should I spend on my credit card?<\/h3>\n\n\n
There is no universal rupee amount. Your spending should be based on what you can comfortably repay. Your credit limit should not become your spending budget.<\/p>\n\n<\/div>\n<\/div>\n
\n
Should I get multiple credit cards as a beginner?<\/h3>\n\n\n
Usually, there is no need to rush. Start with a card that suits your spending, understand how it works, and consider additional cards only when they provide a clear benefit.<\/p>\n\n<\/div>\n<\/div>\n
\n
How often should I check my credit score?<\/h3>\n\n\n
You don’t need to obsessively check it. Periodic checks can be useful, particularly before applying for major credit, but your focus should be on maintaining healthy credit habits rather than chasing a particular score.<\/p>\n\n<\/div>\n<\/div>\n
\n
Is a credit card better than a debit card?<\/h3>\n\n\n
Neither is universally better. Credit cards can provide rewards, purchase protections and help build a credit history, while debit cards spend money directly from your bank account. A credit card is most useful when you can consistently repay the bill in full.<\/p>\n\n<\/div>\n<\/div>\n
\n
How do I choose my first credit card?<\/h3>\n\n\n
You can compare different cards on Great.Cards<\/strong> to see which options fit your spending pattern instead of choosing solely based on the highest advertised reward rate.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"Getting your first credit card can be exciting. You suddenly have access to a convenient way to pay, earn rewards, […]<\/p>\n","protected":false},"author":8,"featured_media":710,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[64],"tags":[],"class_list":["post-708","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured"],"_links":{"self":[{"href":"https:\/\/great.cards\/blog\/wp-json\/wp\/v2\/posts\/708","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/great.cards\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/great.cards\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/great.cards\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/great.cards\/blog\/wp-json\/wp\/v2\/comments?post=708"}],"version-history":[{"count":2,"href":"https:\/\/great.cards\/blog\/wp-json\/wp\/v2\/posts\/708\/revisions"}],"predecessor-version":[{"id":712,"href":"https:\/\/great.cards\/blog\/wp-json\/wp\/v2\/posts\/708\/revisions\/712"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/great.cards\/blog\/wp-json\/wp\/v2\/media\/710"}],"wp:attachment":[{"href":"https:\/\/great.cards\/blog\/wp-json\/wp\/v2\/media?parent=708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/great.cards\/blog\/wp-json\/wp\/v2\/categories?post=708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/great.cards\/blog\/wp-json\/wp\/v2\/tags?post=708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}