We all are first timers at some point of our lives. So here I am with today’s post and as you might have already guessed, it is about tips for those who are choosing a credit card for the first time in their lives.
Before applying for a credit card
Yes, the preparation starts even before you click “apply”. There are certain criteria to be fulfilled before you can go about choosing a credit card for the first time. As a starting point, you need to be a legal resident, must have an income source and bank account, offer a stable credit history, and fulfill other requirements determined by each individual credit card company.
If you do not have any of the above people (spouse/family members) could co-sign with you.
Convince your bank about your eligibility
Before choosing a credit card, you should be worrying about convincing your bank about your eligibility to apply for a credit card. The easiest way to do this is by developing a financial relationship with your bank, long before you put in your credit card application.
Make sure that you open a checking account. Make it a point to save some money each month and also to use the debit card that the bank provides along with the account in a very responsible manner. Once you have established a reputation for a few months, you can now confidently put in your credit card application and look forward to getting it accepted soon by your bank authorities.
Tips for choosing a credit card
Now that you have cleared all the obstacles, you can now safely think about choosing a credit card. You need to look out for the card that best suits your financial needs and preferences. In general choosing a credit card with low APR and low (or $0) annual fee is good way to start for first timers.
Another point to verify is the rewards or bonuses that come with your credit card. Understand the terms and conditions thoroughly before you jump at the first credit card that is marketed to you. Many first timers make the grave mistake of choosing a credit card that has the highest or the most attractive rewards.
While rewards and bonuses are a very good thing, most often they come with certain terms and conditions. Most of the attractive rewards are tied in to a certain spending level, which you have to cross in order to get the rewards. So do not jump at the first offer, use your logic while choosing a credit card for the first time.
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