As I mentioned, I’m 18 and just received my first credit card. I’m looking for advice or recommendations on what to do and what to avoid. My limit is $200, and I plan to use it for gas and sometimes food. I know it’s important to pay on time and not max it out. My goal is to start building my credit early so that I can have a good credit score by my early to mid 20s.
Make it a habit to always pay your statement balance fully before the due date every month. This is crucial, and everything else comes after that.
Francis said:
Make it a habit to always pay your statement balance fully before the due date every month. This is crucial, and everything else comes after that.
Is it okay to pay it just one day before the due date?
@Kyrie
Yes. You can set up autopay for the statement balance on the due date itself, and it works perfectly. I’ve been doing it for years with no issues.
It’s okay to max out your card as long as you can pay the balance by the due date.
Which card did you get?
Barbara said:
Which card did you get?
I got the Capital One Platinum Secured Card.
As long as you can manage your spending, try to use your credit card for every purchase. You can use anywhere from 0% to 100% of your credit limit each month as long as you can pay it off.
Don’t stress about utilization unless you are applying for a loan soon. Utilization doesn’t have long-term effects; it just helps boost your score temporarily. The idea of always keeping utilization low is a common misconception.
Pay your bill once a month, not more and not less. Wait for the statement to come out, then pay it off like a utility bill. Don’t pay less, or you’ll incur interest; don’t pay more than the statement balance or you lose potential interest you could earn by holding onto your cash longer.
This strategy can help you get higher credit limits as many banks want to see a balance between high usage and timely payments. They often determine limits based on your statement amounts.
But make sure to follow the most important rule: always pay your statement balance each month. If you can’t do that, rethink your credit card use.
@Tennyson
When you say pay by the due date, do you mean literally on the due date or just before it?
Kyrie said:
@Tennyson
When you say pay by the due date, do you mean literally on the due date or just before it?
If your card generates statements on the 1st and has a grace period until the 28th for interest-free payments, make sure to pay the full balance before the grace period ends.
Kyrie said:
@Tennyson
When you say pay by the due date, do you mean literally on the due date or just before it?
Yes, I pay on the due date itself using autopay.
It’s really simple: don’t spend more than you earn and always pay on time. Once you stick to these practices, you’ll realize credit cards can actually be very beneficial.
Think of it like a debit card. Only spend what you have in your bank account, or plan ahead knowing you’ll have enough to cover the payment when due. If you keep paying off your statement balances, your credit will build quickly.
Congrats! 
Use your credit card like you would a debit card by only spending what you can pay off easily. Don’t be like my former friend who I had to stop allowing to use my AMEX because she didn’t manage her credit well.
She was supposed to be paying off her credit card debt but instead racked up more. I ended up covering her payments which she never acknowledged.
She wasn’t responsible, and you don’t want to go down that path.
Just stick to using it for basics like a $25 gas fill-up, and always pay it off each month. Otherwise, don’t bother using it!