Understanding how to use credit cards responsibly is crucial for anyone starting their financial journey. This article shares valuable advice given to a friend applying for her first credit card. Key ground rules include never charging more than you can pay off each month, paying more than the minimum, and understanding your credit card terms. The article recommends starting with simple options like the Discover it® Secured Credit Card or the Capital One Platinum Credit Card, which are ideal for beginners. It clarifies common misconceptions, such as the belief that high spending improves credit scores; instead, maintaining a low credit utilization ratio is essential. The piece also discusses the pros and cons of paying rent with a credit card, the importance of setting up autopay to avoid late fees, and the irrelevance of interest rates if balances are paid in full. Overall, the article emphasizes the importance of responsible credit card use to build a solid credit history.
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