Getting Your First Credit Card
Contributed by Rachel Johnson
Getting Your First Credit Card
Getting your first credit card can be exciting! Finally, your very own credit card! But, choosing what type of card and how to use it should not be a spontaneous decision. You should choose carefully, each credit card and purchase can affect your buying power for years to come!
Selecting the right credit card for you
You should start off with a credit card with simple terms. Preferably no annual fee and a reasonable interest rate. Also, you should think about starting off with a low limit credit card. If you're young and going to school, you may qualify for a student credit card which will have a low limit of just five hundred to one thousand dollars. Until you know what your credit card habits will be, it's safer to go with something that can only have a low balance so you are sure you'll pay it off.
Remember, if you don't pay it off on time that will affect your credit for at least the next five to seven years, sometimes even longer!
Where to get your first credit card
You'll probably get several applications in the mail for credit cards, and these are probably all reasonable offers. If one looks like it's a fit for your lifestyle, just be sure to read all the fine print before sending in your application.
The internet is also a great resource for credit cards. There are websites that are dedicated to setting you up with a credit card company that matches your lifestyle, income, and needs. Many credit card companies take applications right over the internet, which is great! Often times you'll know within a minute whether your application has been approved or not!
Things to consider when reading the fine print
Is the interest rate reasonable?
Does the interest rate increase too much after the first billing period, or first year of use?
Do you have a minimum balance?
Is there an annual fee?
