Credit Card 101: Getting My First Credit Card @ 21

Hey Lemon8🍋 fam,

Ever wondered what it's like getting your first credit card? It's an exciting (and maybe a little scary) step into adulthood! Today, I'm sharing my experience and some things I learned along the way.

⁉️ Why get a credit card? ‍There can be lots of reasons! For me, it was a combination of:

👆🏻 Those sweet sign-up bonuses! (Singsaver/SmartMoney) can offer some amazing rewards for new cardholders.

👆🏻 Cash back on my spending: Who doesn't love getting money back on things you already buy?

🙋🏻‍♀️ But wait, what's the difference between a debit and credit card? That's a great question! Here's the lowdown:

👆🏻 Debit card: Like a digital piggy bank, you're only spending the money you already have in your account.

👆🏻Credit card: The bank gives you a credit limit (like a borrowing limit), and you pay them back by the due date.

🧐 Okay, so there's statement dates, outstanding balance, statement balance and minimum payments... what's the difference? ‍ Don't worry, it's not that complicated!

👆🏻 Statement date: Think of this as your credit card's "report card" date. It tells you the timeframe for all the transactions included in your upcoming bill.

👆🏻 Statement balance: This is the total amount you owe for all the purchases you made during the statement period. It's ideal to pay this entire amount by the due date to avoid interest charges.

👆🏻 Outstanding balance: This is the total amount of money you owe on your credit card at any given time. It includes all your purchases, cash advances, fees, and any interest that's accrued. Think of it as the running tab of everything you've spent on your card since your last statement.

👆🏻 Minimum payment: This is the smallest amount you are required to pay by the due date to keep your account in good standing. It's important to remember that paying only the minimum will drag out your debt and rack up interest charges.

🚨 Remember: It's always best to try and pay your statement payment in full by the due date to avoid interest charges.

💳 So, which card did I choose?

I went with the Standard Chartered Simply Cash Credit Card for its simple 1.5% cashback on everything I buy. It might not be the highest cashback out there, but for someone new to credit cards, it felt manageable.

😏 My personal tip?

I always pay my outstanding balance before the statement date. Credit can be stressful, and I don't want to worry about interest! But hey, everyone has their own preferences.

Do you have any questions about credit cards? Let's chat in the comments! 💬

🙃 P.S. Remember, a credit card is a tool, and like any tool, it can be helpful or harmful depending on how you use it. Always spend responsibly and within your means!

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