College + first credit card = ???
It can be scary – to be 18 with your first taste of independence and the newfound freedom to spend money you don’t even have yet.
Well, maybe not so scary if that’s all there was to it, but scary when you know that failing to pay back those first credit card bills on time and in full can thwart your future efforts to rent your own place or qualify for the loan you need to kickstart your dream business or limit you from living your life post-grad on your own terms.
A full quarter of millennials say building a great credit score would be the scariest milestone to take on at the moment in Capital One’s Platinum MasterCard Credit confidence survey.
They know what’s at stake, with a full 48 percent recognizing that establishing good credit is the most important reason for having a credit card. But knowing that credit is important isn’t enough – millennials also have to know how to go about building their credit and how to use it wisely – avoiding the trap of common credit myths and mistakes.
I hit the streets of New York to get a live look behind the numbers and hear more of what millennials had to say about their first credit card – what they know, what they don’t and the hard lessons learned…
Millennials on Money: My First Credit Card

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Credit mishaps and myths aren’t limited to millennials. Making the most of your first credit card is often learned the hard way. Check out what these personal finance bloggers went through with their first credit cards….
- “I wish I knew that my credit score wasn’t the same as my credit report. Yeah, sounds silly now but I had no idea back then. I couldn’t understand why everyone was denying me credit or only offering really high rates, saying that my credit score was too low. I couldn’t see anything wrong with my credit report so I didn’t understand the problem.” – Joseph Hogue at PeerFinance101
- “Check your credit repot first! I was listed on one of my mom’s credit cards as an approved user for emergencies before getting my own and it was tanking my credit score. We had no idea why I was having such trouble getting approved, but even just being an approved user will show up on your credit report as a reflection of credit you have access to and overall credit utilization.” – Mel Bondar at BrokeGirlRich
- “I wish I thought more about it and wondered where that money came from!” – Jim Wang at WalletHacks
- “I was 18 when I got my first credit card, which actually turned out to a good long-term move in building credit. But one thing I wish I knew then was to hold out for a better sign-up offer. I got this ridiculous bucket hat (which for some reason I still own) that probably cost like $1 to make.” Nick Loper at Side Hustle Nation
- “I wish I had known that a “free” t-shirt would cost me years of stress, loss of freedom to make my own decisions and more than $30,000 in repayments. Ultimately, I learned the lesson that a credit card is not extra money, but instead it should be used as a tool in a planned budget.” LaTisha Styles at YoungFinances
- “It’s easier to get approved for a credit card with credit history than with a job. One of my college buddies and I applied for a store credit card at the same time, soon after graduation. She had another credit card but didn’t have a job at the time, whereas I had no credit card but had landed and was working a full-time, real job. She was approved, but I was denied.” Julie Rains at InvestingtoThrive
How to Use Your First Credit Card
While there is plenty of potential for irresponsible credit use, your first credit card can actually be one of your greatest financial tools – protecting you from fraudulent purchases, helping you build credit and even helping you budget – when used correctly.
So how do you use your first credit card correctly?
Follow these credit card basics:
- Read the fine print! When choosing your first credit card read through the terms and conditions, making note of those that best suit your needs.
- Annual fee (preferably none when you’re starting out)
- Annual Percentage Rate (APR)
- Grace period
- Other fees (late payments, balance transfers, etc.)
- Make payments on time and in full. Not only will late payments cost you in interest and fees, they can also lower your credit score.
- Avoiding maxing out your credit card. You may have a $1,000 credit line, but that doesn’t mean you can (or should) use it all. In fact, it’s recommended that you keep your credit utilization below 30 percent – with a $1,000 credit card limit that’s $300. Pay off your balance to keep your balance below the 30 percent credit utilization ratio.
- Check your monthly statements. Mistakes happen, make sure you don’t pay for them by checking your credit card bill each month and verifying that all charges are accurate. If you spot an error, call your credit card issuer ASAP to let them know.
- Get CreditWise®. Use a free app like CreditWise® to learn more about the factors that go into your credit score and use the simulator to see how your score could change when you take certain actions.
By following these steps, you can avoid common credit mistakes, using your first credit card to your advantage – no scary mishaps required.
If you’re a seasoned credit user already, be sure to share your story below or in the comments on YouTube so that our new credit card users can and start their credit journeys with confidence!