Responsible Credit Usage: Best Practices for First-Time Credit Card Users

Getting your first credit card is an exciting step in your financial journey. You’re finally getting the freedom to make your own purchases, unlock exclusive rewards, and start building your credit history. It is a huge responsibility, but with the right steps, you can manage your credit well.  

IDFC FIRST Bank offers a set of easy, actionable tips designed to help new credit card holders build strong money-management habits from the start.

Before you begin using your credit card, set a monthly budget for your credit card. Paying with a credit card is super easy and effortless, and you often might forget that at the end of the day, it's still borrowed money. As a first-time user, treat your credit card like cash and learn to perceive it as such. Only spend what you can comfortably repay at the end of the month. Track your spends regularly through the IDFC FIRST Bank Mobile App and use spending alerts to stay within your limit to ensure you do not exceed your budget. 

When using a credit card, timely payments are an absolute non-negotiable and are essential for maintaining a strong credit profile. Always pay at least the minimum due before the due date, though paying the full outstanding amount is ideal to avoid interest. IDFC FIRST Bank offers up to 48 days of interest-free credit, giving you ample repayment tenure flexibility. Set up autopay or reminders to ensure you never miss a payment.  

The credit card you choose should align with your financial needs, lifestyle and spending needs. Even the rewards provided by the card should align with your lifestyle. If you travel a lot, go for a travel credit card, if you love dining out, look for those rewards. As a first time user, start with a card that helps you build responsible credit habits while offering meaningful benefits. Review fees, reward structures and partner offers before choosing your card. 

Setting a conservative credit limit helps you stay in control during your initial credit journey. Keep your monthly credit utilisation under 30% of the assigned limit. This helps maintain a healthy credit utilization ratio which is an important factor in building your credit score. 

Every purchase you make earns reward points that can be redeemed for travel bookings, dining, shopping vouchers and other curated experiences. Make it a habit to track your accumulated points and redeem them before expiry to maximise the value of your card.  

Your credit score reflects how responsibly you manage credit and plays a key role in future financial approvals. Maintain low utilisation, pay your bills on time, and avoid applying for multiple loans or cards at once. Keep your usage low and credit score positive.   

Your first credit card is more than just a payment tool, it's your first step towards building financial freedom. Along with all of these tips, make sure to stay vigilant when using your card- keep your PIN, OTPs and other credit card information protected at all times.  

To explore options and apply for your first credit card, visit the IDFC FIRST Bank website