6 lessons I’d tell my younger self about credit cards
Editor's note: This is a recurring post, regularly updated with new information and offers.
Some people collect stamps, others collect trading cards or coins. But if you're like many of us at TPG, you likely collect credit cards.
With 10 credit cards in my wallet, chances are I have more credit experience than the average 20-something.
I'm proud to say that I have never missed a payment while juggling nearly a dozen credit cards. In turn, my credit cards have helped me earn thousands of points and miles for travel to places far and wide — all while building up an excellent credit score.
Based on what I know now, here are the six lessons about credit I would have liked to tell my younger self.
Get started
There's a quote attributed to Norman Vincent Peale: "Any action is better than no action at all." This principle applies to various facets of life, but it especially rings true for credit newbies.
For most of us, your first card probably won't be The Platinum Card® from American Express. Not only does this luxury travel card come with a $895 annual fee (see rates and fees), but it also requires a good to excellent credit score to qualify.
To be approved for a premium card like the Amex Platinum, you'll need sufficient credit history to prove to issuers that you can make monthly payments. That's why developing a credit strategy as soon as possible is important — even if you're not applying for a premium card.
I started my credit journey on my 18th birthday. As a present to myself, I applied for a student credit card.
While it did not come with all the bells and whistles of my current cards (some of which carry $500-plus annual fees), it taught me invaluable lessons on managing my credit and mastering the art of financial responsibility.
Ultimately, your first card should have no annual fee on your first card, which means it will be limited in perks. That's expected, though, since the first year is about building up your credit portfolio.
Related: From credit newbie to credit wizard: Here's a 5-year strategy for rewards cards
Follow two rules
You don't need to be a credit expert to apply for and manage your first credit card, though you should know what you're signing up for. If you take away anything from this guide, remember these two rules:
- Pay your monthly balance on time and in full — every month.
- Never charge more than what you can afford.
Whether this means you set up automatic payments, create weekly reminders to check your account balance or use your card only for essential expenses, abiding by these principles will ensure that you keep your credit in tip-top shape.
Opening a line of credit comes with a ton of responsibility, but these two simple rules will help you avoid interest charges and late fees. They'll also improve your credit score over time, bringing me to my next point.
Related: TPG's 10 commandments of credit card rewards
Avoid misinformation
I grew up thinking that credit cards are evil and issuers are here to prey on innocent consumers to boost profit margins. Sound familiar?
Related: Why Dave Ramsey is wrong about credit cards
There is a lot of misinformation and incorrect assumptions about credit cards. Many of us were taught that debit cards are a smarter financial choice than credit cards; in many cases, that couldn't be further from the truth.
Fortunately, we're here to debunk some of the most common credit card myths:
- Does having many credit cards hurt your credit score?
- Are cards a surefire way to get into debt?
- Does your income impact your credit score?
- Is a debit card better for your credit history?
Take time to research what your credit score means and why it's so important — and then take steps to keep it as high as possible.
Related: Why you should have multiple credit cards
Shop around
For most beginners, opening a credit card with a bank where you already hold a checking or savings account is easiest. For me, that was absolutely the case. I opened a student card with Wells Fargo because I didn't know what my other options were.
Of course, it's nice to have your credit card and general banking statement streamlined into one account — a good option for those who don't want to manage multiple logins.
But I'd advise my younger self to shop around. If you're studying, student credit cards are a great place to start — and the options have drastically improved over the years.
Related: My experience of getting my first student credit card — and which credit card I want next
If I could do it all over again, I would open a student credit card with Capital One or Discover. Here are my top recommendations:
- Capital One Savor Student Cash Rewards Credit Card
- Capital One Quicksilver Student Cash Rewards Credit Card
- Discover it Student Cash Back
The best part of any of these cards is that there's no minimum to redeem your rewards (even if it's just $10 cash back to cover a meal at Chipotle), which would have been a game changer as a college student.
Related: The best credit cards for college students
The information for the Discover it Student Cash Back has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Avoid foreign transaction fees
While paying your bills in full and on time can avoid interest charges and late fees, other fees are associated with credit cards. One of the most common — especially on student cards and many no-annual-fee cards — is swiping them outside the U.S.
I didn't know about foreign transaction fees while studying abroad in Paris, which cost me hundreds of dollars. Both my debit and credit cards charged a 3% foreign transaction fee on every purchase — and you can only imagine how much that starts to add up over time.
If you're traveling internationally, you can avoid these pesky charges by opening a card that waives foreign transaction fees. The Capital One student cards mentioned above waive these fees. Also, check out our guide for the best cards with no foreign transaction fees.
Related: 10 tips to save on overseas ATM withdrawals
Earn points and miles
Once you master the fundamentals of credit, it's time to expand your horizons.
Whether for spring break or summer vacations, points and miles can unlock hundreds — if not thousands — of dollars in "free" travel.
Eventually, it became time to put my cash-back card in my (figurative) sock drawer and apply for my first travel credit card.
I wish I had applied for my Chase Sapphire Preferred® Card (see rates and fees) sooner; it's truly one of the best cards for earning and redeeming points for travel. It comes with a $95 annual fee, a generous sign-up bonus, terrific earning rates and other benefits to boot. Read our full review for more information on this great card.
Combining everyday purchases and travel spending on a card like the Sapphire Preferred can help you accrue thousands of points and miles annually.
Related: How to redeem Chase Ultimate Rewards points for maximum value
When you're ready to up your rewards game, you should probably hold onto that first credit card you opened — especially if it has no annual fee. Canceling a card can have a detrimental impact on your credit score. You also should charge something small on the card every few months to prevent the issuer from preemptively closing your account due to inactivity.
Bottom line
When it comes to credit cards, you'll hear all sorts of conflicting advice from your friends and family. As I gained firsthand experience with my credit cards, I quickly learned many lessons that changed my perspective on money.
By treating credit cards as a tool to improve my finances, I've been able to reap all the benefits. I hope you can, too.
Related: TPG's guide to getting started with points, miles and credit cards
For rates and fees of the Amex Platinum, click here.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees