For someone new to credit, which practice should be avoided?

• A. Rewards cards.
• B. A card with no declared annual fee.
• C. A card with a generous cash back program.
• D. A card that is clearly designed for beginners.

Answer: (A)

Rewards cards should be avoided by someone new to credit because the lure of earning points, miles, or cash back often tempts you to spend more than you intend. For a beginner, building a solid payment history with minimal cost is the priority, and carrying a balance means high interest can quickly outweigh any rewards you earn. Rewards programs also add complexity— spending categories, caps, and redemption rules— which can make budgeting and tracking easier and cause confusion. A safer starting approach is a basic card with no annual fee and straightforward terms, or a secured card, so you can establish a record without extra costs and debt risk. Cards that are clearly designed for beginners or that offer simple, predictable terms are preferable because they reinforce good habits like paying on time and keeping utilization low. In short, avoid reward-focused cards as you start building credit to keep things simple, affordable, and focused on building a reliable payment history.