Credit cards 101

Getting your first credit card can be both exciting and intimidating. Credit cards are a convenient way to manage purchases—but remember, they are also a loan that must be repaid.
 
Here are some simple ways to choose the right card and use it wisely from the start.
 

Choose the right credit card

Selecting a credit card involves balancing fees, interest rates, and benefits based on how you plan to use it.
 

Understand fees

Annual fees can range from zero to $75 or more. Look for a card with low or no annual fee, and pay attention to late payment and cash advance fees.
 

Review interest rates

Interest rates vary widely and can exceed 20%. Be cautious of low introductory (“teaser”) rates that increase over time. Always review how interest is calculated.
 

Evaluate rewards and benefits

Many cards offer rewards like travel, cash back, or discounts. These perks typically equal about 1% of your spending. Choose benefits you’ll actually use—and make sure they outweigh any added costs.
 

Match the card to your habits

If you pay your balance in full each month, you may prioritize rewards. If you carry a balance, focus on finding a lower interest rate.
 

Use your credit card responsibly

Building good habits early can help you avoid debt and build strong credit.
 

Pay your balance in full

Paying your full balance each month helps you avoid interest and build a positive credit record.
 

Keep your credit limit manageable

A lower limit can help you stay in control—especially when you're just getting started.
 

Make payments on time

On-time payments are one of the most important factors in building your credit history.
 

Start small

Use your card for occasional or necessary purchases until you’re comfortable managing it.
 

Protect your account

Never let others use your card or share your card number.
 

Track your spending

Compare your receipts to your monthly statement to stay aware of your spending.
 

Keep your account active

Use your card occasionally—even for small purchases—to keep it active.
 

Avoid cash advances

Cash advances usually come with higher interest rates and no grace period.
 

Create a budget

Create a spending and budget plan to stay in control of your finances.
 

Take a break if needed

If your credit card becomes difficult to manage, stop using it or close the account.
 

We can help

If you have questions about choosing or using a credit card, visit a branch, call 1-800-288-3425, or connect with us through Think Online.