June 2025
If you're in high school or college, chances are you've heard about credit cards—but do you really know how they work, or if you should have one? You may see credit card offers in the mail and wonder if they’re right for you.
Let’s break it down.
What Is a Credit Card?
A credit card is a payment tool that lets you borrow money from a bank or credit card issuer to make purchases. Unlike a debit card, which pulls money directly from your bank account, a credit card lets you buy now and pay later—usually by the end of the month.
Think of it as a short-term loan. You’re given a credit limit (a maximum amount you can borrow), and it’s your job to pay back what you spend—ideally in full and on time.
Why Do People Use Credit Cards?
- Convenience – Easy to use online and in stores.
- Build Credit History – When used responsibly, credit cards help you build a credit score—important for renting apartments, getting car loans, or even getting a job.
- Rewards & Perks – Many cards offer cashback, travel points, or discounts.
- Emergency Backup – Useful when unexpected expenses pop up and you don’t have enough in your checking account.
What’s the Catch?
If you don’t pay your balance in full, you’ll be charged interest—a fee added to what you owe. Credit card interest rates can be high, and unpaid balances can grow fast. That’s why it's important to only charge what you can afford to pay off every month.
Also, missing payments or maxing out your card can hurt your credit score. And remember, having a good credit score is important when renting an apartment, applying for loans or getting a job.
Tips for Using a Credit Card Responsibly
- Start small. Use your card for manageable purchases, like gas or groceries.
- Pay your balance in full each month to avoid interest charges.
- Make payments on time—even one late payment can impact your credit.
- Track your spending so you don’t go over your limit.
- Use alerts from your card app to monitor due dates and spending habits.
Things to watch out for
- Introductory rates. Make sure you understand how long the introductory rate lasts. Some introductory rates could only last a few months and then will rise to the normal rate.
- APRs. Know what the annual percentage rate is for purchases and other items, such as balance transfers (if you transfer a balance from another credit card) or cash advances (for getting cash from your credit card that you payback later like any other purchase).
- Annual fees. Some credit cards charge you an annual fee.
- Other fees. Look through all the fees so you understand what you’ll be charged for and when.
Should You Get One?
If you're 18 or older and have a steady source of income (even part-time), you might consider applying for a student credit card, which usually offers perks and rewards just for students, or even a secured credit card, which requires a small deposit and is designed to help build credit safely. When used responsibly, these can be good ways to build a good credit history while taking advantage of rewards.
Final Thought: It’s a Tool, Not Free Money
Credit cards can be a smart financial tool when used wisely—but they require discipline and responsibility. If you’re unsure whether you're ready, talk to a parent, a teacher, or one of our friendly bankers. We’re here to help you build a strong financial future.
Have questions about getting your first credit card? Check out our credit card options or stop by your local Waukesha State Bank office to speak with a personal banker.