First Time Credit Cards Getting your first credit card is a great way to learn responsibility to spending. It is also a good way to get in trouble if you are not careful.
This is why it is important that you choose a credit card which will allow you to get the most out of your first time applying for a credit card. This means picking a card which will have good APR Interest rates as well as a credit card which will have bonuses that you can take advantage of.
While this might seem and sound impossible for your first credit card application, it is not.
The things to look for when you are getting your first credit card is to make sure that the
- annual fees are low to zero,
- that the APR interest rate is not through the roof and
- that there are bonuses which you can take advantage of.
These things will help you not only to have a great credit card for the first time but it will also set you up to have even better credit cards in the future.
This is because if you can prove your trustworthiness with a decent card, it will be that much easier to get a better card in the future.
Pay Attention to Annual Fees
Not all credit cards will charge you an annual fee to get your first credit card. Even among the credit card companies, you will find that there are some cards which will charge you an annual fee and some which will cost you nothing.
Simply shop around to find the one that you want that has the lowest annual fee. The best one will be the one which does not charge you anything because when you get a credit card for the first time you are likely to have limited funds which you will need for other essentials.
Pay Attention to APR
Even without an annual fee, it is possible to lose your shirt simply by having to by exorbitant APR rates.
Make sure that you are choosing a card which will not charge you anything over 25%. This is because you do not want to have to spend out $25 for every $100 that you carry over from month to month over a one year period.
The best cards will allow you have an APR in the range of 11% to 15%. Look for these kinds of cards, but do not be surprised if they make first time credit card users pay an annual fee.
Pay Attention to Bonuses
There are not many credit card companies which will offer a first credit card with bonuses attached to it.
However, it is possible to get the credit card you are looking for if you know where to look.
A credit card like the Capital One No Hassle cash Rewards Credit Card will allow you to get
- 2% cash back on groceries and gas.
- You will also get 1% cash back on all purchases.
- You will get a 0% APR to start and 19.8% after that.
- You will have to pay a $39 annual fee, but all in all, you will end up saving a lot of money from a card like this.
Armed with this detailed knowledge about first time credit cards, you should be able to build a strategy that gets you the best of credit cards for first time applicants.