New Delhi, Oct. 9 -- Turning 18 brings new freedoms as well as important financial responsibilities. For many young adults, getting a first credit card may seem like a milestone in their journey towards financial independence. In India, 18 is generally the minimum legal age to hold a primary credit card, subject to the issuer's eligibility criteria.

However, a first credit card is more than a convenient way to pay for goods and services. When used responsibly, it can help young adults begin building a credit history early. Used carelessly, it can lead to mounting debt that may take years to repay.

Understanding how credit cards work, including their costs, repayment terms and business models, is therefore essential for first-time users....