The lure of plastic, with cashless transactions and free credit, is hard to resist, but it can also lead to a debt trap. Here are the things to consider before you choose your first card

Check Charges

To start with, find out the card's fee structure. Some might offer zero annual rentals, but high interest rates. The right type for you will depend on the nature of your usage.

Consider Credit Limit

It is important to check the credit limit. If you intend to use it only during emergencies, go for a low limit. It is preferable for the first time plastic user to opt for a low limit.

Rewards to Suit Spends

If you are pick ing a card with rewards benefits, make sure the offers suit your spending habits and lifestyle. Some cards are more suited to frequent fliers, some to foodies.

Balance Computation

Know how the charges are calculated. The most common method is the daily average balance, where the everyday balance is added and divided by the number of days in the billing cycle.

Use Card Responsibly

Do not start with big-ticket purchases on your new card. Avoid carrying forward the balance and maintain a good track record to ensure that your credit score is not affected.