Credit cards can be a useful tool for building credit and covering unforeseen expenses, but they do require that you use your card wisely. Having a strong credit profile is a crucial decision factor used by landlords, utility companies and other financial institutions. A low credit score or high debt can reflect poorly on an applicant, possibly resulting in denial. Additionally, if credit is managed incorrectly, it can cause significant debt, high interest rates and financial burden.
As a first-time credit card holder, it’s important to learn how to manage your spending, what you should consider before applying and what credit card may be the best option for you.