Credit Card: 5 Tips For First time Credit Cards Use September 14, 2022 by indiaztech

Basic knowledge for those who are using credit cards for the first time: Credit cards are a convenient means of payment that can be used not only for shopping at stores, but also for e-commerce sites and utility bills. Here, we will thoroughly explain the basic knowledge including how credit cards work.

What is a credit card in the first place?

A credit card is a card that allows you to pay for your purchases on a deferred basis. In addition to shopping at stores, it can be used for a wide range of purposes such as E-Commerce sites, shopping and payment of utility bills. In addition, when you stay abroad for overseas travel or business trips, you can pay by credit card even when you are abroad. Using a card saves you the trouble of exchanging currency. However, since credit cards are issued based on the credit of the user, prior screening is required at the time of issuance.

How Credit card Works?

Credit card purchases work differently than cash purchases. Check it out to maximize the benefits of using your card.

When shopping with cash, the customer pays the store directly for the product or service, completing the payment. Basically, the feature is that transactions are conducted between two parties, the customer and the store. On the other hand, when shopping with a credit card, the card company is involved in addition to the customer (user) and the store (affiliated store), and the transaction is carried out by three parties.

When a customer uses a credit card to pay for goods or services, the store receives payment from the credit card company. After that, the basic flow is that the card company bills the user for the usage fee in a lump and returns the points. At this time, the store that made the payment with a credit card will pay a settlement fee to the card company. In this way, the settlement fee paid by the merchant becomes a profit for the credit card company.

When credit card payment is introduced, the merchant bears the payment fee. However, by accepting credit card payments, we can expect an increase in the customer attraction rate and average spend per customer. The advantage is that users can receive points reduction and can shop more profitably than cash. In this way, each of the three parties can benefit from using the credit card.

 Points for choosing your first credit card

Here are some tips on how to choose a credit card that will help you when issuing your first credit card. Credit cards differ in terms of the number of participating stores, annual membership fees, point redemption rates, etc., so please choose the one that best suits your needs.

1. Global And Available

International brands can be specified when issuing credit cards. International brands refer to companies that provide credit card payment systems. Because it is distributed all over the world, it is characterized by being able to be used not only in Japan but also overseas. Typical international brands include “Visa”, “MasterCard”, “JCB”, “American Express”, and “Diners Club”. These international brands are available in different countries and store types. If you have it as a sub card after the second card, you can choose according to the characteristics of each brand. Take note of the wide variety of countries and stores available and choose accordingly.

2. No annual fee

There are types of credit cards with no annual fee and types with an annual fee. Types with an annual membership fee generally tend to have a high return rate and ancillary services. However, if you are making a credit card for the first time, we recommend a type with no annual fee, which is easy to use and has no annual fee. There is also a way to consider the type with an annual fee after you get used to using credit cards. “Paytm credit card” has no annual fee for a long time. It can also be used by those who want to reduce the burden of annual membership fees as much as possible because they are creating a credit card for the first time. Please consider it as the first piece that students and working people have.

3. High return rate

Pay attention to the point redemption rate to use the credit card for a good deal. This is because the higher the point redemption rate of a credit card, the faster it will be possible to accumulate points for the same usage fee. The point redemption rate varies depending on the card, and some cards have a higher redemption rate when used at specific stores. However, if you are using a credit card for the first time, it is ideal to have a return rate of 1% or more for normal use, regardless of the specific store. “Some credit card” has a basic return rate of 1%, and the annual fee is free for a long time. It is recommended as a credit card for the first time because you can expect great point rewards and it is easy to use for a wide range of shopping.

4. Credit card brand matters internationally

Here, we will make a thorough comparison of international credit card brands. In addition to membership benefits and limited benefits, usage incidentals and gift contents may differ for each brand card. If you’re making your first card, choose a card brand carefully.


An international brand of VISA, a major payment brand company headquartered in San Francisco, USA. Both in name and reality, it is one of the world’s top international brands, and has a particularly high market share in the United States. According to the “2020 large-scale cashless payment survey” by Ipsos Co., Ltd., which conducts global marketing research, the VISA brand share in Japan was 50.8%, which was the majority. It is a credit card owned by a Japanese person, and it is calculated that one person chooses VISA. VISA mainly provides licenses and does not issue credit cards in-house. Due to its ease of use, it can be said that it is the best international brand for your first card or main card.


It is an international brand that has a high market share not only in Japan but also in the EU. The number of merchants worldwide is top class along with VISA. In addition, there is a service that allows you to search for the nearest ATM all over the world, and an emergency service that is available 24 hours a day, 365 days a year, both in Japan and overseas, making it highly convenient overseas. According to the “Outline of Large-Scale Cashless Survey in 2020”, it has a 17.8% share in Japan. Just like VISA, keep in mind that they don’t issue their own credit cards.

American Express (American Express, AMEX)

Established in 1850 in New York, USA, it is an international brand with a high status. The service that is one rank higher is attractive, and it can be said that it is a brand that advanced users want to pay attention to. According to the “Overview of Large-Scale Cashless Survey in 2020”, although the share in Japan is small at 3.1%, there is a tendency to regard the small share as a high rarity value. There are plenty of benefits for overseas travel, such as airport lounge services, as well as member-only events and concierge services.


An international brand originating in China, boasting over 7 billion issued worldwide. It is widely used not only in mainland China but also overseas, including Japan. According to the “Outline of Large-Scale Cashless Survey in 2020,” the share in Japan tends to be 0.1%, which is second only to Diners Club. On the other hand, it has a strong market share in mainland China, and it can be said that it is a brand that is particularly easy to use for those who have many opportunities to travel and business trips to China.


An international brand from the United States, it is counted as one of the world’s 7 major international brands along with the above brands. Among international brands, it is an emerging force, and at this time it is not compatible with new issuance in india (as of February 8, 2022). However, since it is affiliated with JCB and UnionPay, it is possible to use it at domestic merchants.

5. First-time Card benefits

What benefits can you expect from a credit card? In a wide range of scenes in daily life, payment can be made more conveniently and profitably than cash. Here, we will thoroughly explain the recommended points, so please read it as a reference when issuing a card for the first time.

Collecting Cashback Points

If you pay with a credit card, you will be rewarded with points based on the amount spent. The rate at which points are returned to the user is called the “return rate”, and in general, 1% or more is a high return rate. If you want to focus on the ease of saving points, choose a credit card with a high return rate. Accumulated points can be exchanged for various benefits such as prizes and gift certificates. There are also credit cards that allow you to accumulate “miles”, which are points for airlines, and credit cards that increase points if you make purchases at specific shops. You can also create multiple credit cards and use them for different purposes, such as using a compatible card as a sub card at stores that are eligible for preferential services, and using a main card with this return rate for everyday use at stores that are not eligible. it’s recommended. Earned points may be transferred to other companies’ points, and some card companies offer point gifts and cashbacks for new membership campaigns, so be sure to check when you join.

Get Credit card Special advantages

Credit card holders are entitled to exclusive member-only benefits. Examples include preferential discounts on products, insurance for overseas travel (overseas travel insurance, etc.), use of airport lounges, and concierge services. These credit card benefits are referred to as “ancillary services.” Ancillary services may be attached to cards with no annual fee, and can be used by issuing a credit card. Since the contents differ depending on the type of card, you may choose a credit card after comparing the completeness of the contents.

Credit cards have different statuses, such as “general card”, “gold card”, “platinum card”, and “black card”, and the services and benefits that can be received differ depending on the rank. High-ranking cards tend to offer more services. For example, supplementary insurance such as domestic travel accident insurance that is automatically attached, priority pass that allows you to use airport lounges, concierge service, roadside assistance, etc.

However, for high-ranking cards, the process of accepting issuance and passing the examination may be different from that of ordinary cards. In order to join, an invitation from a credit card company called an invitation may be required, and payment ability (such as whether there is a stable and continuous income) and credit history (use status so far) are required according to the membership screening criteria according to the rank. etc. is required. Also, keep in mind that the higher the rank, the higher the annual fee. When making a credit card for the first time, it is common to start with a general card. We recommend that you build up a track record of use and apply for a high-ranking card if necessary.

Less risk of loss than cash

In the unlikely event that you lose your credit card, you can immediately suspend the use of the card by contacting the card company. Suspended cards are disabled and cannot be used for payments after that. If the user goes through the procedure for reissuing the card, the new credit card can be used. Also, if a third party misuses your lost card, you can receive compensation if you follow the necessary procedures. As mentioned above, credit cards have theft insurance, so there is a merit that the risk of loss is lower than cash.

Avoid the inconvenience of bank withdrawals

Carrying a credit card keeps the amount of cash you keep in your wallet to a minimum. Cash payments are not required at stores that accept credit card payments. Save yourself the hassle of going to the ATM to withdraw cash from your bank account. Another advantage is that you can make high-value payments as long as they are within the usage limit. You don’t have to carry around a lot of banknotes when making big purchases. With less cash to handle, you’ll be able to pay for all your purchases smoothly. It is convenient to use a credit card that allows contactless payment when making small purchases such as at convenience stores. There are also credit cards linked to smartphone payments and electronic money.

Disadvantages of credit cards, know before use it first time

In some cases, creating a credit card poses a risk to the user. In order to eliminate anxiety after joining, please check the disadvantages explained below.

Risk of Over-Use

Some people may not be able to use credit cards consistently and may overspend. Especially for first-time users, it is important to be conscious of planned use, such as deciding how to use it in advance. Please be aware that if payment is delayed due to overuse, late payment penalties will be incurred and credit information may be damaged.

A fee will be charged depending on the payment method

When using a credit card, a fee may be charged if you pay by revolving payment or payment in three or more installments. It is important to note that some payment methods may incur high fees. As a countermeasure, it is usually a good idea to use a lump sum payment and use the appropriate payment method according to your ability to pay.

Beware of unauthorized use

If you own a credit card, there are cases where your card information is misused by a malicious third party. Common examples include card theft, phishing, and skimming. It is also important for those who create a card to check in advance the amount of compensation and compensation details of the card company, and how to respond in the event of damage.

What to do after getting your first credit card

Once you have a credit card, make the following preparations so that you can continue to use the card with peace of mind. Here are some points to keep in mind when using credit cards.

Write your signature on the back of the card

When you receive the credit card you applied for, first fill in your signature in the signature space on the back of the card. When you use your credit card at a store, your identity is verified by comparing the handwriting of the signature on the sales slip with the handwriting of the signature in the signature column. Therefore, a card without a signature is considered to have a credit problem and may be refused use. Also, if the signature field is blank, there is a high risk of unauthorized use in the event of loss or theft, and you may not be able to receive compensation even if there is damage. It is important that you sign the signature line first.

Check the account from which the card is debited

Credit card charges will be deducted from your bank account on the payment date. Please note that if the balance is insufficient by the payment date, withdrawal will not be possible and the card will be suspended. If payment is delayed, late payment charges will be incurred according to the number of days delayed. The longer the delay, the higher the penalty amount, so please pay the usage fee as soon as possible using the method specified by the card company. After creating a credit card, it is a good idea to get into the habit of checking the billing amount and the balance of your bank account before withdrawing money.

Understand the usage limit in advance

When you create a credit card, the user’s “expected payable amount” is calculated at the time of examination, and the “credit limit” is determined based on this. The amount of the maximum amount varies depending on conditions such as the user’s age and place of employment, as well as attributes such as students, freeters, and housewives. Please note that the total available limit includes both the shopping limit and the cashing limit, and the shopping limit will be reduced by the amount of using the cashing function.

Users cannot purchase more than the credit limit. If you plan to make a large purchase, make sure to use it systematically within the limit. At this time, if you apply to the credit card company and pass the examination, you may be able to receive a temporary increase in the limit. Consider raising your credit limit if you need extra funds for an overseas trip or a move due to marriage.

Precautions to avoid failure with your first credit card

When you use a credit card for the first time, let’s hold down the points that are prone to failure. Security measures are essential, especially when using online shopping sites. Here are some points for safe use.

Get used to the one-time payment

Credit card payment methods include “single payment” that is paid in the following month, “installment payment” that is paid in multiple installments, “revolving payment” that is paid at a fixed amount each month, and “bonus lump-sum payment” that is paid at once during the bonus period. There are types of With a one-time payment, the amount per payment tends to be large, but there is no card usage fee. In order to reduce the total payment amount, it is safer to get used to the one-time payment as much as possible and finish the payment in the next month.

In installment payments, a fee will generally be incurred from 3 or more payments. Pay in installments and revolving payments can reduce the amount of each payment, but be aware that a fee will be charged and the total amount of payment will increase. In addition, there is no fee for bonus lump sum payment, but there is a risk that the burden will increase if expenses overlap. Considering the possibility of unexpected expenses occurring during the bonus period, please be careful to use it with a margin.

Thoroughly set and manage PIN numbers

A PIN number is set when a credit card is issued. A personal identification number is a number required to be entered for the purpose of identity verification at the time of payment, and must not be known to a third party. Avoid setting numbers that can be easily guessed by others, such as your birthday or phone number. It’s also dangerous to store your credit card along with a note with your PIN, as you might forget your number. When setting and managing numbers, be sure to take thorough risk countermeasures yourself.

Take security measures on the Internet

If you use a credit card to pay for online shopping, use the “personal authentication service” provided by the card company. Personal authentication service refers to a service that requires the input of an ID, password, security code, etc. in addition to a credit card number at an online shop to confirm that the payment is made by the person himself. To prevent fraudulent use of credit cards on the Internet, it is important to register in advance with the personal authentication service.

When shopping online, make sure to only use secure shopping sites that are SSL-encrypted. The SSL-encrypted site is characterized by the fact that it is difficult for a third party to extract credit card information due to encryption technology. Sites whose URLs start with “https://~” are encrypted with SSL. In order to enjoy shopping safely, let’s work on security measures on the Internet, Also Read: What is Web Hosting? 10 recommended WordPress hosting.

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