Well, it’s not as cool as getting your first car, but if you’re thinking about getting a credit card for the first time, there are a few things you might want to think about. With so many companies and products available, getting your first credit card can definitely be a challenge. But, fear not, Budget Blonde is here to help! With a little knowledge of the basics, you will definitely be able to pick the best one for you.
Step 1: Find Out Your Credit Score
Eek! Scary, I know, but you shouldn’t expect a super high score. This is your first card after all, and you need to build a credit history. However, it shouldn’t be too low either unless you’ve had other financial struggles in the past. When you apply for a credit card your credit rating will be used to decide whether you’re approved. Basically lenders want to see whether you’ll be able to repay any credit offered. They take in to account any long-term agreements you’ve had, such as cell phone contracts, in order to gauge this. If you find out that you actually have a poor credit score, you can improve it in a number of ways, like going for a card with a higher interest rate and demonstrating that you’re are able to make repayments on time.
Compare Credit Cards
Credit card comparison websites make this easy peasy. So, find one you can trust and spend some time searching through it to see what’s being offered. It’s also worth talking to your existing bank because they may be able to give you a preferential deal to reward your loyalty.
Look for An Awesome Interest Rate
Some cards won’t charge you interest on purchases for a set period – usually a few months, then the percentage can really jump. So, be sure to check the fine print. Of course, the best thing you could ever do is get into the habit of paying off your cards in full every month. I wish I had since it took me forever to get credit card debt free. Don’t make the same mistakes I did, and be smart from the beginning!
Don’t Over Apply
When the time comes to apply, try to avoid applying for multiple credit cards since this will affect your credit score and may have an impact on your chances of getting accepted in future. Just start off with one and see how it goes. You can always add more over time.
So, is there anything I missed? Does anyone else have tips for first time credit card users?
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