Essential Tips for First-Time Credit Card Users in Canada

When applying for your first credit card in Canada, understanding how credit cards work is crucial. Unlike debit cards, credit cards involve borrowing money. Knowing the fees associated with credit cards can prevent unpleasant surprises.

Credit limits dictate how much you can charge on your card. Staying within your limit and making timely payments is key to responsible spending. A good credit score, essential for significant financial decisions, can be built by using credit cards wisely.

Paying off your balance in full each month avoids interest fees. If that’s not possible, make at least the minimum payment to prevent accruing high interest over time. Signing up for automatic payments can help avoid late fees.

Understand fees like annual, late payment, and foreign transaction fees. Avoid cash withdrawals or online fund transfers using your credit card, as these incur high interest rates. Protect your credit card information and monitor your account for unauthorized transactions.