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FinFIRST Blogs

Credit Card

New to credit cards? Here’s a simple guide

Key Takeaways

For first-time credit card users, a card is more than a payment tool. It is the starting point for building a credit history that unlocks better financial products later.
If you are new to credit cards, let your spending habits drive the choice. Know what you will use it for before you apply.
Compare fees, interest rates, rewards, and benefits before choosing a credit card. Your first credit card should give back more than it costs you.
Pay on time, keep usage low, and check your credit report regularly. These habits matter more than anything else.

19 Jun 2026 by Team FinFIRST

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Getting your first credit card is an important step. As a student or young professional, a credit card not only gives you the independence to take charge of your spending but also shapes your financial future. The way you use your card and whether you pay your bills on time will directly shape your credit profile, which matters a lot when you eventually apply for any other form of credit. Therefore, choosing the right credit card is one of the most important decisions you will make.

So, here’s everything you need to know to select the best credit card for your needs and use it wisely.

Your guide to choosing the right credit card with no annual fee

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How do you choose the right credit card?

There are multiple variables to consider when choosing the right credit card. Given the wide array of options available, first and foremost, you need to have clarity on what will you primarily be using the card for.

Here is a checklist to consider with respect to getting a credit card.

1. Credit requirement:

Your credit history plays a big role in determining which cards you are eligible for and what benefits they offer. As your credit history grows stronger, you unlock access to cards with better rewards, higher limits, and more valuable perks.

That said, if you are just starting out and do not have a credit score yet, IDFC FIRST Bank offers FD-backed credit cards like the FIRST WOW! and FIRST EA₹N that do not require a prior credit history or income proof, making them a practical first step into the world of credit.

2. Interest rates:

Knowing a card’s interest rate is important, especially if you expect you will occasionally be carrying balances forward or converting transactions into EMIs. You would want to consider a card that has a low Annual Percentage Rate (APR), so your interest costs can be minimised.

3. Fees:

Many credit cards have a fee structure that is worth understanding before you apply. This typically includes joining fees, annual maintenance charges, late payment fees, balance transfer fees, and foreign currency transaction fees. For premium cards that offer stronger rewards and travel benefits, fees may apply but are often waived once your annual spending crosses a certain threshold.

4. Rewards and benefits:

Most credit cards have a tiered system to earn rewards and bonus points. This will vary with offline or online merchants across select product categories or brand partners. In addition to a lucrative reward program, look for a card that allows for flexibility of redemption, whether as cashback, reduction of the balance payable, or air miles. IDFC FIRST Bank Credit Cards, for instance, offer a strong rewards programme with multiple redemption options across travel, vouchers, and more.

Where can you use credit cards?

When used responsibly, a credit card can be a strong financial tool. With a variety of benefits such as rewards, cashback, and other value-added features, a credit card can become your primary mode of transacting for various purposes.

1. Shopping:

You can find deals on everything from everyday essentials to high-value purchases pretty much all year round with your credit card. These may be in the form of higher rewards per rupee spent that can be redeemed for purchases later, cash discounts, or the option to convert your high-value purchases into no-cost EMIs.

2. Travel:

Credit cards allow you to earn discounts on travel fares and hotel bookings. Many cards even allow you to redeem points for air miles, helping you make travel more affordable. A credit card also makes it easier to spend in foreign currency on your trips abroad without the hassle of carrying too much cash.

3. Personal:

You can manage all household and personal expenses on your credit card, such as groceries, utility bills, subscriptions, and other expenses. A credit card can provide short-term payment flexibility during unforeseen expenses, helping you manage unexpected situations such as medical emergencies or other unforeseen expenses.

4. Business:

A credit card can provide the much-needed liquidity for entrepreneurs and freelancers – from managing operational expenses to stop-gap funding and more. A credit card can offer a loan on demand to small business operators. It also allows you to consolidate all business expenses in one place, further simplifying your accounting process.

How do you use a credit card effectively?

Using a credit card well comes down to a few simple habits. Here is what to keep in mind:

Use it for planned expenses:

Instead of making impulsive purchases, use your credit card for recurring or budgeted expenses such as fuel, groceries, utility bills, or travel bookings. This can help you earn rewards while keeping spending predictable.

Pay your bill on time:

Always try to pay your credit card bill in full and before the due date. This helps you avoid interest charges and late payment fees while maintaining a healthy credit history.

Spend within your credit limit:

Avoid using too much of your available credit limit. Keeping your credit utilisation low can make it easier to manage repayments and may positively impact your credit score.

Use EMIs thoughtfully:

If you convert a purchase into an EMI, choose a repayment tenure that comfortably fits your monthly budget. This can help you manage larger expenses without straining your finances.

To get started on your journey of financial independence and a world of possibilities, apply confidently for an IDFC FIRST Bank Credit Card. There are a host of different card options to choose from based on your credit profile and spending needs.

Additionally, the low, super-saver interest rates make it possible for you to manage all your personal and business expenses, handle unforeseen contingencies, shop, travel, and do everything your heart desires while building a healthy credit score that will hold you in good stead for the future.

Frequently Asked Questions

What credit score do I need to get a credit card?

Banks do not publicly disclose score thresholds, but a score of 750 or above generally improves your approval chances and access to better cards.

Can I get a credit card if I have no credit history?

Yes. IDFC FIRST Bank offers FD-backed cards like FIRST WOW! and FIRST EARN that do not require prior credit history or income proof.

What fees should I check before applying for a credit card?

Look for joining fees, annual maintenance charges, late payment fees, and foreign currency transaction fees. These vary by card and are sometimes waived on meeting a minimum annual spend.

What is credit utilisation and why does it matter?

It is the percentage of your available credit limit that you are currently using. Keeping it below 30% helps maintain a healthy credit score.

How long do reward points last on an IDFC FIRST Bank credit card?

Reward points on select IDFC FIRST Bank credit cards are valid for 24 months from the date of posting. Redeem before expiry to avoid losing accumulated value.

What happens if I only pay the minimum amount due?

The remaining balance attracts interest at the card's APR, which compounds quickly. Always aim to pay the full statement balance by the due date.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.