Applying for a Credit Card – 5 Common Mistakes to Avoid
Applying for a credit card is an important step in managing your personal finances in the digital age. When used wisely, a credit card can offer flexibility in spending and unlock valuable benefits. However, for first-time cardholders, it's not uncommon to make costly mistakes — from choosing the wrong card type and using it for the wrong purposes, to losing control over spending.
Let’s explore five of the most common mistakes people make when applying for a credit card for the first time — and how you can avoid them for smarter financial decisions.
1. Choosing a Credit Card Based on Impulse, Not Needs
Not every credit card is right for every user. Different card types come with different features — cashback, rewards points, travel benefits, interest-free periods, and more. Many first-time users are drawn in by attractive welcome gifts or promotions, without properly considering their actual spending habits.
The result? A card that brings little value and may even lead to unnecessary fees. In extreme cases, misuse of credit cards has left some individuals with debts amounting to billions of VND — a cautionary tale worth remembering.
2. Skipping the Fine Print
One of the most serious mistakes is failing to thoroughly review the terms and conditions of the credit card.
Interest-free periods, annual fees, interest rates, cash advance charges — these are all critical to understand. Yet many users gloss over the details or don’t ask clarifying questions when applying.
Be proactive. Ask your financial advisor or consultant for clarity — the more detailed, the better. A small overlooked clause today can turn into a costly surprise tomorrow.
3. Treating a Credit Card Like Free Money
Some cardholders start spending freely after receiving their card, mistaking the available credit for disposable income.
In reality, a credit card is a "spend now – repay later" tool. When the billing cycle ends, the amount spent must be repaid. Failure to do so on time may incur high interest charges.
Remember: a credit card is a short-term loan — not free money.
4. Paying the Minimum Balance Only and Deferring Debt
Paying only the minimum due might seem like an easy way to manage repayments, but this is often a financial trap.
The remaining balance accrues interest, and if you keep rolling it over, compound interest can cause your debt to grow rapidly. Without a proper repayment plan, even a small initial debt can snowball into a major burden.
5. Mở thẻ từ nguồn không chính thống
Sophisticated scams using fake websites and links are increasingly common. Many users have had their personal data stolen — and some have unknowingly applied for credit cards through illegitimate channels.
Always apply for a credit card through a licensed financial institution such as Shinhan Finance, using official channels:
🔗 https://www.shinhanfinance.com.vn
☎️ Hotline: 1900 5454 49
A credit card is a powerful financial tool — but only when used responsibly. For first-time users, avoiding the five common pitfalls above can help build better financial habits, maintain a strong credit profile, and fully enjoy the benefits a credit card offers.
Before applying, take time to research thoroughly, choose a product that fits your needs, and always prioritize security. Shinhan Finance is proud to accompany you on your journey toward smarter, more sustainable personal finance management.
Shinhan Finance
