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Credit: Three tips for applying for your first card

Credit card use is on the rise as Americans struggle to pay for day to day items, but there are important things that come with opening a card.

credit cards stacked on a wooden stable

Right now an estimated 183 million Americans use credit cards.

Before opening up a card it’s better to understand exactly what you’re getting yourself into.

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Three major tips about opening credit cards

It’s important that you remember every purchase you make with that card is a loan.

You will need to pay it back later.

A debit card is different because it’s money you already have so the purchase is being made in full.

You will have a line of credit, but it’s a better idea to not max your card out.

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It’s recommended to not use over 30% of your line of credit.

Interest is added to balances that carry over.

Interest adds up on carried over balances.

This means your best option is to pay it off at the end of each month.

Finally, whatever terms and conditions you agree to matter.

There are different APR rates, rewards, and payment policies for each card and institution.

What one offers may be of better value to you than what another offers.

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