There are definitely some perks credit cards offer. They’re convenient, safer to carry than cash, and can earn you some exciting rewards, depending on the provider of your choice. Plus, they offer stronger fraud protection, perhaps even better than debit cards. Since you're technically spending the bank’s money (not yours), it's generally easier to dispute fraudulent charges — unless, of course, you've handed out OTPs to random strangers.

One of the advantages of using credit cards is that, when managed responsibly, they don't usually require you to go into debt. But for first-time credit card owners, having one can sometimes be confusing and, at times, scary. We understand: having one is a huge responsibility. Sam Bugay, a financial advisor from Manulife Philippines, told The Beat Asia that credit cards shouldn’t be treated as “free money.” Instead, first-time owners must treat each swipe as “debt you are obligated to pay back.”

Credit cards are not and will never be a free pass for one to spend irresponsibly. Here, we’ve rounded up some dos and don’ts every first-time credit card owner must know.

Avoid Paying Only the Minimum Balance

As much as possible, pay your statement balance in full and avoid paying only the minimum balance. Doing so can lead to interest, which becomes harder to pay off as it continues to grow. According to Bugay, paying only the minimum balance is “a dangerous habit.”

“You will end up paying more for your purchases and can quickly fall into long-term debt,” said Bugay. She also mentioned that the primary reason why some credit card users fall into debt is spending beyond their means, emphasizing the importance of only “[purchasing] what you can afford to pay in full.”

Prioritize Paying on Time, Not Chasing a Good Credit Score

Building a good credit history is, of course, a must for every credit card user. However, if you’re a first-time owner, your priority must be paying on time — a good credit score will follow. After all, on-time payments are one of the key factors in getting a good credit score.

Paying your statement balance on time is advisable so you can avoid late fees, which can totally damage your credit score in the future. You can also set up autopay for each month (even at least the minimum payment), so you avoid accumulating additional fees if you forget to pay the full statement balance on time.

Review Your Statements Monthly

Upon applying for a credit card, one thing you must consider is that sometimes there can be sneaky charges. This is why it’s important to check your statements from time to time, so you can immediately dispute charges you didn’t personally authorize.

Additionally, reviewing your statements monthly may help you track your spending and potentially cut back on unnecessary expenses, as you’ll gain better knowledge of your spending habits. We know it can be a hassle sometimes, but having control and enough knowledge of your spending can prevent you from making the same credit card mistakes.

Don’t Spend Beyond Your Means

For this one, you need to be realistic. If you know you can’t afford to pay what you owe on time, then that item you’re wishing to purchase is something you can’t truly afford. The credit on your card is not your money — and it never will be. Every purchase you make is a debt that must be paid back. Credit cards are tools for one’s convenience. They are not for someone to use recklessly. It’s technically your utang (debt), and, you know, utangs don’t have a positive ring to them.

“Be brutally honest with yourself. If you are prone to impulse buys or have struggled with spending in the past, a credit card could be [risky],” said Bugay.

Don’t Forget to Unlink Your Credit Card After Canceling a Service

Even the best of us have fallen into this same rabbit hole. It’s not pleasant to be paying a debt for a service you no longer want or weren’t at least able to enjoy. This applies to platforms that require subscriptions, like streaming platforms (Netflix, Disney+, Spotify, and more).

With this in mind, you must always double-check your accounts after canceling a specific service to ensure there won’t be any future charges once your subscription renews. “These automatic charges can be easy to forget,” said Bugay. “If you cancel a service, you must remember to unlink your card.”

Don’t Reach Your Credit Card’s Limit

Just because you can, doesn't mean you have to. Maxing out your credit card limit can not only affect your credit score, but it can also make it difficult to pay off. And if you ever need to apply for loans, banks may see this as a red flag and be less likely to approve your application.

A once helpful credit card can slowly turn into a financial burden once your limit is maxed out. It is, of course, enticing to spend once you see your limit going higher.  But practicing delayed gratification and self-discipline can help you stay in control of your finances, and may actually keep you away from further stress.