Being on your own for the first time, making your own money, and making your own decisions is something to look forward to and be excited about. At the same time, it comes with responsibility.
One area where many young adults (and older adults) tend to struggle is with the proper management of money and debt. With advertisements promoting short term gratification all around us, it's easy to think that credit cards are a quick solution when we're low on cash or the newest item on the market is calling our name.
Below are some points to consider when shopping around for your first credit card.
Though it might feel like it when you're first starting out, a credit card is not free money; it's a loan that you need to pay back to the creditor. If you don't pay off the full amount each month, then you're charged interest. Annual Percentage Rate, or APR, is the cost of borrowing money, and it's compounded. This means that buying a $50 pair of shoes on your credit card today could end up costing you $100 or more down the road if you don't pay them off in a timely manner.