Get Your First Credit Card

Getting Your First Credit Card

Credit cards are a convenient payment method. Simply swipe your card to pay for your purchase, and get a bill at the end of the month. Sounds simple enough, but all too often people get in over their heads and buy more stuff than they can afford. When the bill comes they find the payment is too high, so they carry a balance and pay interest on the remainder.

Practice responsible credit management

The most important aspect of having a credit card is to use it responsibly. Credit card responsibility can be accomplished in two easy steps; don't buy things you can't afford, and pay your bill on time. Follow these two rules are your credit history will likely improve to the point of having excellent credit. However, racking up huge amounts of debt and failing to pay on time can have a very negative impact on your financial well-being.

Who are first credit cards for?

Students, young professionals, and new immigrants to Canada are typically the largest set of people looking for a first credit card. If you don't have an established credit profile, sometimes it can be difficult to be approved for a credit card. In such cases, it may be necessary to get a secured card to prove your financial responsibility, and to build a solid credit profile. Secured cards require a security deposit and typically have higher annual fees. However, the fee may be a small price to pay to help establish credit.