Why I Was Afraid of Credit Cards and the 6 Things I Learned While Getting My First One

I’m a credit cards editor, and for most of my youth, I was afraid of credit cards.

To be fair, it can be good to have a healthy dose of caution when it comes to credit cards. Used irresponsibly, they can harm your creditworthiness and make it challenging to finance a new car, initiate a new mortgage or be approved for a life-altering loan. And no one wants that.

Growing up, I watched as friends rushed to sign up for store credit cards, only to later regret them, and as family members anguished over their tanking credit scores. Why would I ever want one for myself?

I was determined to stick with my safe, dependable debit card for good until I realized that being completely afraid of credit cards could hinder my finances in the long run. 

Why I finally admitted I needed a credit card 

My turnaround started with a solo trip to Syracuse to visit my brother in upstate New York. I needed a rental car to reach his school campus, and found myself standing in the airport Hertz line, hoping they would let me rent my first car even though I wasn’t quite 25 years old. As I made my way to the front, I was told they needed to put a security deposit down on my credit card. I froze. I only had a debit card and (to my horror) discovered that it would cost over double to use that card instead. All my weekend spending money was now in the hands of the invisible Hertz holding cell.  

That moment was when I realized having a credit card — even one I only used for renting cars or hotel rooms — would be necessary. Out of fear, I had refused to open one for so long, but the reality was that I was making my travel experiences far more inconvenient and pricey than they needed to be. Plus, I realized I was tired of feeling ignorant about my own finances. 

It was then I decided to educate myself on the world of credit cards and how to use them responsibly. 

6 things I learned while opening up my first credit card 

Diving into credit card research was intimidating at first, but the more I learned, the more I realized they weren’t as scary as I’d imagined. By the time I finally applied for my first rewards card, I felt more in control of my financial journey than I ever had before, and hopefully, you can too. 

Here’s what I learned: 

1. Tackle the terminology 

Learning credit card terminology is the first step to fully understanding how credit cards work and how to best use one. Credit cards can be complex, and the fine print can have you running — but understating the terms that come with your card will make using it responsibly much easier. 

Here are just some of the vital credit card basics I learned:

• Most cards come with a credit limit, which is the maximum amount of credit you can charge to the card.
• Each card has a specific APR, or annual percentage rate, which is the amount of interest charged at the end of each billing cycle. This can be either fixed or variable.
• A billing cycle is about 30 days. 
• There are several different types of credit cards, all with unique perks and benefits for the cardholder. 

Before applying for a new card, make sure you feel knowledgeable about what credit cards are, how they function and why they’re such powerful financial tools. 

2. Determine what matters most to you 

I quickly discovered that becoming an expert on you is one of the most critical steps to finding the right credit card. Because each card is designed for a specific purpose, you’ll want to ensure the one you choose compliments your spending style, and not the other way around. 

For example, to determine which categories I spent the most on, I reviewed my debit card spending history to assess where my money was going. Turns out, I spend most of my money on bills, groceries and travel. I realized then that I would most likely want a credit card that earned points or cash back at supermarkets and on flights.

However, not all new cardholders may want a rewards credit card right away. Secured credit cards offer a straightforward option for cardholders to establish good credit-building habits without any distractions. 

As you compare credit cards, it’s essential to first determine what card type would benefit your lifestyle, business or family spending.

3. Credit cards often come with rewards and perks

The very reason I used to love my debit card became the reason I realized I needed a change: debit cards are very straightforward. 

Credit cards, on the other hand, can offer exciting rewards, benefits and unique welcome offers that cardholders can enjoy. Early into my research, I realized I wasn’t getting anything back by spending money only with my debit card.

Rewards cards come in many different forms:

Cash back cards offer a percentage of cash back that you can earn on purchases in specific categories, although some offer a flat rate which can apply to all purchases.

Points-earning cards reward their members with points or miles that can then be redeemed for travel purchases, gift cards, merchandise and more.

Miles-earning travel cards can allow you to transfer your miles to eligible travel partners, which can often enhance your travel experience.

I quickly realized I love the possibility of converting my natural spending into flight tickets, hotel stays, gift cards and more. My old debit card definitely couldn’t do that.

4. Beware the high credit card interest 

Credit cards are, unsurprisingly, a form of credit. But I quickly learned they’re also notoriously one of the highest-interest forms of debt. As of early October 2025, the average credit card interest rate was 20.09 percent — far steeper than the average loan interest rate of 12.27 percent. 

Credit card purchases are essentially a loan from an issuer that you agree to pay back, so keeping a balance on your card is a fast way to rack up far more than you originally borrowed. Therefore, it’s especially important to pay off your balance in full and on time, every time if at all possible. 

The good news is that there are credit cards that offer zero interest for a limited amount of time. These are useful if you have a daunting amount of debt on a high-interest rewards card and could use a balance transfer. This process involves you transferring your balance with high interest to a card with no interest for a period of time, allowing you to pay it off more quickly. 

Before applying for a new credit card, check out the card’s variable interest rate and if the card offers a 0 percent intro APR period.

5. Rewards credit cards are meant to be paired  

One of the most fascinating things I learned while researching was that rewards credit cards are not designed to be used alone in the long run. In fact, there is no such thing as one credit card that covers every type of reward category, intro APR offer and welcome bonus. Because each is tailored to a certain purpose, it’s often wise to have multiple to cover all your spending needs. Some of the best credit card experts pair multiple credit cards to cover a wider variety of spending categories. 

Even as I excitedly applied for my first credit card, I knew it could only do so much. Other prospective cards I may one day incorporate into my larger card strategy include the Chase Sapphire Preferred® Card as a strong travel card, the Citi Double Cash® Card for flat cash back rates, or the Capital One Savor Cash Rewards Credit Card for excellent rewards on entertainment purchases. 

6. Still nervous? Credit cards have more protections than debit 

If you still have concerns about credit cards vs. debit cards, keep in mind that credit cards offer far more protection for their cardholders. Losing a card or having its information stolen at a gas pump can cause your finances to come to a grinding halt if you have a debit card. It can take weeks to receive a new one, and debit cardholders are often more liable to repay any charges made to their card than credit cardholders, thanks to the Credit CARD Act of 2009. 

If you still have fears about using a credit card, just know that it not only offers more flexibility than debit, but legally, it also protects its users far more. The purchase protections in place ensure a more seamless spending experience every time you hand a merchant your plastic. 

The credit card I chose and why 

So, which card did I end up choosing? After weeks of research and comparing credit cards, I applied for the American Express® Gold Card. Thanks to some very lucky timing, Amex was promoting a limited-time intro offer of 100,000 points after spending $6,000 within the first six months of opening an account, and I knew I had to take advantage of this substantial bonus while I could.

Besides the intro offer, this card just makes sense for me. As a young adult living in Charlotte, N.C., I dine out with friends on a weekly basis. Plus, I almost exclusively buy my groceries at eligible supermarkets, such as Kroger, so using a credit card that earns 4X points at restaurants worldwide (up to $50,000 spent each year) and U.S. supermarkets (up to $25,000 spend annually) comes naturally for me.

Additionally, as someone who travels often, earning 3X points on flights booked directly with airlines or on Amex.com was not a perk I was about to overlook. Plus, Amex Membership Rewards points can be transferred to any of its 20 partners, including Delta Air Lines. Just this past Labor Day weekend, I flew round-trip from Charlotte to Seattle for only $11.20, thanks to my nifty Amex-points-turned-Delta-Skymiles.

Once you feel confident in your spending and rewards-earning strategy, the (credit card) sky can be the limit for you, too. 

The bottom line 

I’ve come a long way since standing at that Hertz counter with only a debit card in hand, terrified I wouldn’t be approved for a rental car. But being afraid of credit cards isn’t any more beneficial than using them irresponsibly, in the long run. Tackling my fear and learning how to best use credit cards has opened the doors of opportunity, and I can’t wait to see where my new credit savvy is going to take me, as it can for you, too.