Credit card lets the user buy-first-pay-later which makes it an increasingly popular option for the millenials in the workforce. It allows them to pay for their needs even when they do not have enough liquid cash in their hands. 

But before you apply for the credit card here are important things you must keep in mind to avail all of its benefits - 

• Avoid the debt trap - when you make transactions using your credit card make sure to pay them off regularly with the regular payments. Simply, avoiding to pay will pile up the payments and turn them to a debt which will lead to monthly interest rate of around 3% to 4% on the outstanding of the card. 

• Do not overspend - once in a while, we all love to indulge and there is no other financing option better than a credit card which will help us do it. However, this must not a habit. As with every transactions made, as a user, you are also supposed to pay it off. Besides, if you doing it just to earn reward points and discounts the strategy might backfire in the long run. Hence, be thoughtful with your spending.

• Auto debit dues - if you find it overwhelming to manually make credit card payment, you may choose the auto-debit option on your card. This will help to stay consistent with your payments while contributing positively to your credit score, in the long run.

Also Read: What is a credit card?