Whether you obtain your first credit card at age 18 or 88, it is critical to learn how to successfully manage this financial tool. Although receiving approval for your first credit card is certainly a milestone to be proud of, equally important is the requirement to use it responsibly so you do not end up in serious debt at an early age. Establishing good credit will be one of the most important facets of a young person’s life, and how you handle your first credit card will likely set the stage for your ability to get a car loan or buy a home in the future.

To help guide first-time credit card holders, we’ve gathered together the following tips that may help develop the tools and habits to live debt-free for life.

If you can’t pay for it, don’t buy it. Sounds simple, but this is a very basic rule. Using a credit card is a convenience, but it is cash out of your pocket at the end of the month.

Before you buy it, ask yourself “Do I need this, or just want it?”. If the answer if simply that you want the item, find the strength to not to pull out your wallet. It is typically easier to pull out a credit card than cash, so this question is particularly key when you are using a credit card as payment.

Know your credit limit, and stick to it. It is likely with your first card the limit is low, $1000 or less — in fact, request a minimal limit at first if appropriate. Ensure that you track your expenditures diligently and do not exceed your credit limit, as the fees and interest you will be charged are exhorbitant.

Research before selecting your first credit card. There are many choices out there, it is usually unwise to jump on the first flyer you see in a magazine or newspaper. Try your bank as a start, and there are many websites that have easy-to-compare tables showing the fees and pros/cons of various types of credit cards.

Don’t assume you can rely on others for financial help. In other words, have the attitude and understanding that any expenditures/debt you are accruing is 100% your responsibility. As an adult, there will no longer be someone else there to bail you out — and understanding and accepting this fact should be key to keeping you on track.

Do not take cash advances from credit cards. The fees can be tremendous, and card-issuers always try to make this so tempting by sending you those pre-printed checks. Steer clear of this practice, use the card for necessary goods and services only.

Continue to use cash. A credit card is a convenience for many situations such as large-ticket purchases, making online purchases, travel, groceries, gas, etc. Continue to use cash for smaller purchases and day-to-day needs.

At the end of the month you will get your credit card statement, and you should be able to recognize all the charges and recall why each was necessary. Pay the bill off before the due date, in full, each and every month. Before long, you will start building a credit history, credit score and financial habits that will serve you well your entire life.

For a thorough explanation of all the different types of credit cards available to help guide a new credit card user, read this article.

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