What really matters with your first credit card

Getting your first credit card is like moving into your first apartment: It’s exciting, empowering — and, once you get used to it, pretty underwhelming.

Your first time out, “you’re not going to have a credit card that is going to have a high limit,” said Paul Golden, spokesman for the National Endowment for Financial Education. “It’s not going to have great benefits or kickbacks or reward programs probably tied to it. And that’s OK.”

A starter credit card is just that — a start. Used responsibly, it’s a way to build a positive credit history.

Applying for your first credit card is simple, but building a credit history takes more effort.

• Stay well below your limit. Using too much of your first card’s limit could sink your score. But you don’t have to spend a lot to kickstart your credit history. It’s possible to build credit by making just one small transaction per billing cycle and paying it off on time. “You could set up your recurring monthly cellphone bill to be paid (with) your credit card,” Golden said.

• Pay your balance in full and on time every month. Do this and you won’t pay a penny in interest or penalties, and you’ll build a positive credit history, too.

• Make a plan. To avoid overspending on your new credit card, set a budget and keep tabs on your accounts. If your spending starts to creep up, trim costs to get back on track. — Nerdwallet