You’ve finally got it — your shiny new credit card. Whether you’re fresh out of NS, starting university or stepping into your first job, congrats! You’re officially a card-carrying adult now.

But before you tap-tap-tap away, let’s talk about how to use your first credit card like a financial pro — without the jargon.

As tempting as it is to buy the latest iPhone or book a flight to Europe with your new credit card, start small with the essentials you already pay for:

• Your Spotify subscription

• SIM-only phone bill

• Even your monthly EZ-Link auto top-up

These recurring charges keep your card active and help you build a repayment habit — without the risk of overspending.

Tip: Link your card to your digital wallet (like Apple Pay or Google Pay), and monitor spending in real-time.

» MORE : Best credit cards for your favourite streaming services

In Singapore, missing a credit card bill can cost you — literally. Expect late payment fees of around $100, and interest rates that can go up to 25% per annum (p.a).

The trick? Automate everything.

• Set up GIRO payments from your bank

• Turn on reminders in your bank app

• Use alerts to get nudged before your bill is due

DBS and UOB allow you to set SMS/email reminders. Check your bank’s mobile app settings.

» MORE : How to pay your credit card bills & outstanding balances?

Here’s the harsh truth: making only the minimum payment (usually 3% of your balance) sounds okay, but it’s a trap. You’ll get hit with interest on the unpaid portion, and it snowballs fast.

Here are some tips to avoid credit card debt:

• Only charge what you can pay off in full each month.

• Think of your credit card as a convenience tool — not a source of "extra money".

• Build an emergency fund to cover 3-6 months of expenses instead of charging it to your credit card and being saddled with debt

• If you’re investing, explore robo-advisors that let you grow your cash while learning the ropes.

• If you are unable to pay the entire sum of your credit card bill, divide it into smaller payments. Save and pay until it is paid off.

» MORE : How does credit card interest work?

Let’s say your credit limit is $3,000. You shouldn’t spend more than $900/month on the card (that’s 30%).

Why? This is known as your credit utilisation ratio. This influences your credit score, which banks use to assess your risk when you apply for loans or credit cards. A lower utilisation ratio suggests better credit health, which determines future loan eligibility and rates.

Your first credit card is like your first bubble tea order at a new shop — you might tweak it later (less sugar, extra pearls), but that first choice sets the foundation.

When you upgrade to a new credit card for better cashback, air miles, or rewards, you might be tempted to keep your old card open to boost your credit score. After all, a longer credit history can strengthen your credit score.

But here’s the catch: Most credit cards in Singapore come with an annual fee of around $180. Before keeping both cards, ask yourself: Is it really worth paying that much for a card you hardly use?

If you do want to keep your old card, here’s how to be smart about it:

• Request a fee waiver — many banks are happy to waive the annual fee if you’ve been an active user.

• Choose a no-annual-fee card — that way, you maintain your credit history without any extra cost.

Even if you rarely use your old card, you’re still responsible for paying any annual fees, outstanding balances, or late charges. Ignoring them could hurt your credit score and undo all the good work you've put in.

Pro tip: Banks like DBS, Citi, and OCBC allow internal card upgrades — so you can move from a student card to a premium rewards card without losing your credit history.

» MORE : How to build credit score in Singapore

Think card fraud only happens overseas? Not true — phishing scams and unauthorised charges happen here too.

• Check your monthly statements, even if you’re on autopay.

• If something looks off, call your bank immediately.

» MORE: Reversing unauthorised credit card transactions

In Singapore, your credit score comes from the Credit Bureau Singapore (CBS) — not from banks directly.

Here’s what to do:

• Check your credit report annually (you get a free one if you’ve applied for credit recently).

• Look out for errors or unfamiliar accounts.

• Monitor your score over time with budgeting apps or bank tools.

Once you’ve nailed the basics, paying on time, staying within limits, and avoiding debt — it’s time to explore the fun stuff: rewards.

Credit cards in Singapore go beyond payments. They offer real-world perks like cashback on groceries, air miles for your next holiday, or discounts on dining and fuel. Some even throw in extras like travel insurance or lounge access.

You don’t need to dive into the fine print just yet. Just know that your card can work for you, not just the other way around.

Curious? Check out these other articles: 

• Best cashback credit cards

• Best rewards and miles cards

• Best credit cards for your favourite streaming services

• Best online shopping credit cards

• Compare all credit cards