{"id":7231,"date":"2026-02-19T09:15:00","date_gmt":"2026-02-19T15:15:00","guid":{"rendered":"https:\/\/stpaulfcu.org\/?post_type=education&p=7231"},"modified":"2026-02-04T14:44:58","modified_gmt":"2026-02-04T20:44:58","slug":"the-beginners-guide-to-credit-cards","status":"publish","type":"education","link":"https:\/\/stpaulfcu.org\/education\/the-beginners-guide-to-credit-cards\/","title":{"rendered":"The Beginner’s Guide to Credit Cards"},"content":{"rendered":"\n

Opening and managing credit cards responsibly is crucial to establishing your credit history, which impacts your eligibility and future loan rates. Here\u2019s what to know about opening credit cards and using them responsibly.<\/p>\n\n\n\n

How credit cards work<\/strong><\/h2>\n\n\n\n

When you use a credit card for a purchase, you\u2019re borrowing money from the card issuer. You\u2019ll repay some or all of it by the bill\u2019s due date. At that time, the credit card company charges interest on your remaining balance. This amount of interest charged is determined by your card\u2019s annual percentage rate, which refers to the annual cost of borrowing money with your credit card. <\/p>\n\n\n\n

Applying for a credit card<\/strong><\/h2>\n\n\n\n

First card? You might be best off starting with a secured credit card, which offers a modest line of credit. For this product, you\u2019ll deposit funds to act as collateral in case of missed payments. However, if your payments are timely, you\u2019ll get the deposit back after a predetermined amount of time. Then, you can close the account and open an unsecured credit card that doesn\u2019t request a deposit for collateral. <\/p>\n\n\n\n

As you consider your credit card options, look no further than your credit union. As member-owned cooperatives, credit unions consistently offer credit cards at lower interest rates than those issued by big banks. <\/p>\n\n\n\n

Using your card<\/strong><\/h2>\n\n\n\n

You can use your card to make purchases at any retailer that accepts your card, and charge up to the available credit limit on your card. However, to help keep your credit score high, it\u2019s best to keep your credit utilization below 30% of the available credit. <\/p>\n\n\n\n

Statements<\/strong><\/h2>\n\n\n\n

You\u2019ll get a credit card statement each month. It will include the following:<\/p>\n\n\n\n