 TITLE: How to Choose and Use Your First Credit Card CONTENT: Decide if You're Ready for a Credit Card\n----------------------------------------\nCredit cards can be a helpful financial tool due to their convenience and the number of benefits and protections they provide to cardholders.\nTo start, they may protect you from fraud since credit cards generally come with zero liability for unauthorized purchases. That means you're more protected if someone steals your credit card or card number since your card isn't directly tied to your bank account like a debit card. They may also offer benefits on eligible purchases, such as extended warranties or a refund if something you buy is damaged or stolen soon after the purchase. And then there are the rewards—cash back, miles and points that can help you save money or travel for free later.\nOnce you've determined having a credit card appeals to you, it's time to take a look at your financial habits to make sure you'll be able to manage it responsibly.\nCredit cards have a spending limit, but there are few other guardrails in place to make sure you don't take on a debt you can't afford to pay off. When you pay less than the full amount on your bill, a credit card's high interest rate can start to pile on debt. Some people find that it can take years to pay off built-up credit card debt—especially if they continue to use their card while paying down the balance.\nAs you think about whether you should get a credit card, consider whether you're looking for a way to increase your spending power, want a card for emergencies or want a card for everyday purchases.\nIf you can treat a credit card like a debit card, only using it for purchases you can pay off in full each month, then you may be able to benefit with little downside. But if you view your credit limit as \"free money,\" max out your card (in other words, spend until you hit the limit) and then only make minimum monthly payments, you can wind up paying lots of interest and hurt your credit scores. END