The first thing to consider is if you can easily make the monthly payments. While it may seem simple only to buy needed items and have a card just in case of an emergency, it rarely works that way. Often times a nice pair of shoes gets swiped on the card, and soon all those little purchases add up to a big monthly statement. While most cards have a low minimum monthly payment, it’s not simply for customer convenience. The remaining balance is charged interest, and the more that’s on the card, the more money the credit card company will make. The forty dollar shoes may end up costing over sixty dollars if you can’t afford to make larger payments, so always make sure you have enough available income to pay more than just a minimum balance.

Another thing to consider is if the convenience and rewards for using a card outweighs the interest rates. If you can afford to pay off most or all of the balance every month, it may be a wise choice to apply for a credit card. Many cards, such as a First Savings credit card, offer cash back, travel points, or a variety of other incentives and goodies. Also look at the interest rates and make sure that you’re not “paying” for those rewards in all the interest you pay to the credit card company. While a set of plane tickets to Florida may be a nice perk, if you’ve paid over 800 in interest to get them, it may not be worth it.

A final thing to consider before applying for a credit card is if you really need it or not. Some people prefer to have just one or two cards, while others have wallets overflowing with specialty credit cards for stores. Look at what cards you already have and whether or not you need another one, or are ready to apply for your first one. It’s very easy to run a large amount of debt when you have more than one card, as most people don’t keep track of every purchase on every card in one central location.

Overall, first time credit cards can be a great addition to any wallet when used carefully and responsibly, one just has to consider if they are ready for that task or not.