Things to Know Before Applying for Your First Credit Card
Getting a credit card for the first time in your life is a huge step. As any important decision you make, it should be a considered and deliberate one too. You need to handle it very responsibly as there are a lot of factors you should take into account before getting a card.
Let’s find out what are those important things you have to know when applying for your first credit company, especially if you’re a young student who has graduated high school a couple of months ago.
A Wise Approach to Getting a Credit Card
There are some certain things you need to ask and answer to yourself before applying for the first credit card in your life. Why? Very often the first credit card becomes a huge failure for so many people. To avoid their mistake, you have to understand what you’re actually expecting to get from a certain card. Choosing the right one guarantees building a good credit history, making your financial future more stable and easier.
There are thousands of credit cards out there. But you shouldn’t feel overwhelmed and confused when it is high time for you to pick one of them. For this purpose, we’ve prepared a list of very simple, but very useful tips for you to follow.
7 Steps to Follow Before Getting a Credit Card
- Check your credit score. It is a huge problem for a lot of people when their application is denied because of a zero credit score. Yes, there are some companies which don’t require from a customer to have score. But what they require is the ability to pay. So, you have to work for at least 6 months before applying for your first card;
- Have at least a couple of hundreds on your saving account. This is more like your own self-motivation and proof that you can save money and manage them correctly;
- Do not check a credit card for bonuses only. It is not right to pick a credit card to use it only for discounts on a gas station or in a restaurant;
- Can you pay off that money 100%? If you’re not sure you can pay off that card, don’t apply for it now. Just wait the moment when you will be sure you can do it;
- Decide what is important for you on a card. What is your preference – a low APR or no annual fee? Compare all bonuses you’re thinking about;
- What is the usability? A good credit card is accepted by almost all companies and providers. So, do a research;
- Know the interest rate. Look for the card with lower credit limits if you don’t have money to pay off them regularly. Just make sure the numbers won’t catch you by surprise.
Hopefully, these tips will make the process of picking your first card easier.