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The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
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6 lessons I’d tell my younger self about credit cards
Stella is a full-time writer with expertise in credit cards, points and miles, and all things travel. She is a journalism graduate of the University of North Carolina, Chapel Hill and previously worked as a copywriter at JetBlue Airways and as a credit cards writer at LendingTree.
August 16, 2024 • 8 min read
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don't cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.Editorial disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
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By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
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Quick summary
The article shares six key lessons for building and managing credit, especially for those new to credit cards.
Starting early with a student card can help establish a positive credit history and teach financial responsibility.
Paying balances in full and on time, and spending only what you can afford, are highlighted as essential habits.
Shopping around for beginner cards and avoiding foreign transaction fees are important tips for students and travelers.
What to consider
Some offers mentioned in the article are no longer available.
Foreign transaction fees can add up quickly when using cards abroad, so choosing a card that waives these fees is beneficial.
Holding onto your first card, especially if it has no annual fee, can help maintain your credit score over time.
What you'll miss from the article
Detailed advice on debunking credit card myths and strategies for maximizing points and miles as your credit journey progresses.
Generated by AI with support from our editorial team.
Update: Some offers mentioned below are no longer available. View the current offers here.
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.
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.
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:
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.
PEKIC/GETTY IMAGES
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.
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.
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.
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.
MIXMEDIA/GETTY IMAGES
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.
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.
NICK ELLIS/THE POINTS GUY
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.
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.
For rates and fees of the Amex Platinum, click here.
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
