Getting your first credit card is in itself a very big adjustment. You may already have a slight idea regarding how credit cards work or how to handle one responsibly. However, there is more that you need to learn especially when it comes to the details. Understanding the ins and outs before getting your first credit card is not only going to save you a lot of money but also build a better credit more quickly. For this to happen, here are two important things you need to put into consideration before getting the first credit card.
- Try a Secured Credit Card
At times you may find it hard in getting your first credit card approved especially when you are starting off with no credit. When this is the case, it would be better to opt for a secured credit card. This credit card is specifically designed for individuals who have no credit or a damaged one. For you to open an account, it is mandatory to put down a cash deposit depending on the card. Keep in mind you minimum credit limit is equal to your deposit. The good news is that you can deposit more thus getting a higher credit line.
- You are Entitled to See the Rates and Fees Before Applying
The best credit card issuers are required by the federal law to disclose a number of terms including fees and interest rates before completing the application. These details are mostly displayed in a Schumer box found on the credit card application page. This table includes the card’s annual fee, late fees, APR and foreign transaction fees. Unfortunately, you will not access some information until you are done with the application process. A good example of such information is your credit card limit.
The Bottom Line
At no time should you apply for your first card blindly without having a clear idea of what is destined to come your way. Doing this might end up proving to be costly in the long run. To be on the safe side, you should carry out a detailed research if you are to stand a chance of getting the best deals not forgetting a credit card free gift. It is only then that you will have an easy time after completing the credit card application process.