When is the right time to get your first credit card?

A credit card can give young adults a new sense of independence, but they come with a new level of responsibility. What are the pros and cons of getting your first credit card? 

Becoming an adult is an exciting and daunting time. But with new freedoms, come new obligations.

Making the call on whether or not to get your first credit card is a decision that is laden with responsibility.

This article will step through the hesitations, the considerations, and the benefits of getting your first credit card.

The responsibilities of having a credit card

Young adults often start thinking about getting a credit card when big changes start happening. 

Starting university means buying textbooks, a new laptop, or software for class. 

Moving into a sharehouse requires a bond deposit, paying for utilities, and doing your own grocery shopping for the first time. 

Going overseas for your gap year means travel insurance, plane tickets, and accommodation.

All of these life events could have you thinking about getting your first credit card.

But one of the main impediments stopping people from applying for a credit card is the risk of debt.

The risk of financial mismanagement is also an opportunity to develop healthy spending habits and to become financially responsible.

When you understand the terms of your credit card, spend within your means, and pay off your balance on time and in full your credit card can become a financial tool instead of a financial risk.

The key to this is understanding how much interest you will have to pay on purchases. Interest is charged as a percentage of the original price when you use your credit card to purchase items. 

To avoid paying interest, ASIC’s MoneySmart recommends considering a credit card with a lengthy interest free period if you know you can pay your balance in full.

After assessing the risks of owning a credit card, you can start to investigate the benefits.

The benefits of having a credit card

A credit card can be a helpful tool to support your personal finances for those big life events like starting university, moving out, and travelling abroad.

It can give you the capacity to purchase those noise-cancelling headphones you’ve been eyeing off, a new couch, or that trip overseas and pay back the balance later. How much later depends on the card.

Different cards come with different benefits. Credit cards with more interest free days provide you with more time and breathing space to stagger your repayments. Low interest rate cards may suit those who know they’ll carry over their monthly balance. 

After you’ve thought about how you will use your credit card, you can decide which can card will suit your needs.

The humm90 Platinum Mastercard has 110 interest free days, two times the typical offer from other cards.

Once you turn 18 you can use your humm90 card to pay for those upfront costs while managing smaller repayments over a longer period of time.

The card that’s right for you fits your financial situation, supports your purchasing needs and helps you manage your money responsibly.

Learn about the benefits of humm90 and get the right credit card for you.