Nowadays, many people has a credit card. But getting a credit card right after the first job can prove costly? Or is it sensible enough to get a credit card after getting your first job? As we know from many media updates that some times also job can be insecure. So, in a uncertain moment, especially you’re new in a job, is it ok to use credit card? To know what is right, experts shared their opinion. Before that, we have to understand what are the benefits of using a credit card. Parallely, we have to understand What to keep in mind before getting your first credit card? As a market is tough and financial conditions also can be challenging, depending on individual’s personal financial ground. To avoid risk, it is better to take opinion from experts.
Benefits of Credit Cards
1. Building a credit history: Making timely payments helps build a good credit profile.
2. Help in emergencies: Credit cards come in handy in unexpected situations like medical expenses.
3. Financial Discipline: Budgeting and understanding of money improves if spending is done thoughtfully.
Deep Agarwal, Head of Payments at digital payments platform PhonePe, says that using a credit card responsibly in the first job lays the foundation for better loan terms and bigger financial achievements in the long run.
What to keep in mind before getting your first credit card?
1. Don’t rush into getting more than one credit card.
2. Pay your monthly bill on time, otherwise there is a risk of interest and default.
3. Choose a card with benefits that align with your spending (such as rewards on fuel, dining, or online payments).
Conclusion: Getting a credit card in your first job can be a smart move, provided you understand its risks and use it responsibly.