top of page

How to use a credit card for beginners

How to use credit card for beginners infographics

The use of credit cards might confuse beginners. Many banks are offering diverse credit cards with many features and advantages. No card meets the meaning of 'best credit card' because everyone has different financial requirements. The best credit card for a person is the one that suits their spending personality. However, Some people might be puzzled by the numerous terms linked with credit cards, but don't worry, here we have explained a guide that helps you to know how to use your credit card.

How credit cards work

Credit cards offer credit on a fundamental basis that you can use again and again as you’re paying off your balance. It is a convenient way to pay for sales and when used wisely, it will help you make credit. Generally, credit cards have specific terms and conditions that list charges, perks, limits, bonuses, and more. You might feel overwhelmed in the beginning by credit card terms, but we're here to assist you to understand typical characteristics so you can prevent unreasonable fees.

Typical credit card terms

Yearly fee: You have to pay this fee every year — if you have one card.

Credit limit: The highest amount of credit the person can use for the purchases.

APR: This is the yearly percentage average or, basically, the rate of interest on accounts that will be paid to you. In order to get the monthly interest rate, divide it by 12 because the rate is annual. This rate is most probably unpredictable and varies with the inflation rate, so at any point, your APR will change.

Cash advance APR: Avoid using ur card for taking out cash because If you use it, you have to pay a higher interest rate versus regular purchases.

Penalty APR: When you make your credit card payment late, then you will be charged a high-interest rate. You will end up paying more interest in potential investments as this arises.

Intro 0% period: You could be blessed to get a credit card that has a promotional duration, upwards of six months, where you will gain from keeping a balance throughout that time and not being paid interest. The terminology for these introductory times differ.

Late payment fee: If you are unable to pay on time, you will charge with a fee higher than $30.

Returned payment fee: Payments that you send that are not accepted may normally be subject to a refund of up to $30.

Foreign transaction fee: There are a few cards that impose a fee for buying outside the country that is generally around 3%.

Cash advance fee: Cash credits you demand will be debited at a 3%-5% charge of the amount requested.

Balance transfer fee: Any debt transferred from an existing credit card to a qualified new card could be directed to a balance transfer charge of an average of 3%-5% of the transferred number.

Choose Card as per your requirement

For a wide variety of uses, from building credit to receiving discounts, to staying out of debt, and more, there are various credit cards available. you can determine your purpose before getting your credit card, and evaluate cards from different issuers before applying. To see how you can apply for a card, some issuers encourage you to complete a pre-qualification form that makes a soft pull on your account. This does not change your credit score and is a perfect way to get the best offers shopping around. One note: Pre-qualification is not an acceptance promise.

Read the terms and conditions

There are varying prices and fees for each card that vary depending on any variety of factors, including credit history, acts you do (or don't take), the market prime rate, and more. you must read the cardmember policy so that you are mindful of any costs that might be paid and how the card operates. We also reviewed cards from top issuers on our website as well as lesser recognized cards to allow you to make aware of some of the conditions you face, but before you submit, be sure to read the cardmember agreement.

Practice responsible credit behavior

● Make on-time payments.

● Pay your balance in full.

● Avoid overspending.

● Keep a low utilization rate.

● Check your monthly statements.

● Check your credit score and credit report.

● Secure your card.

● Don’t request a cash advance.


Credit cards are the most convenient and beneficial when you do smart use of these cards. But you can take the benefits of credit cards when you know the proper way to use them. For all those beginners who don't know how to use credit cards, here we have discussed the best guide for you. If you also want a business credit card we will also provide guidance for how to apply for a business credit card.

Let the posts
come to you.

Thanks for submitting!

bottom of page