What Should my First Credit Card Entail?
There are several different credit cards on the market. Some have a lot of benefits, yet some don’t really give back anything in return except a high interest rate. Getting your first credit card is a big time in a young adult’s life. You must make sure you know how to use them wisely, you don’t get yourself into debt, and that you follow the rules of a credit card.
If you’ve just turned 18 years old, and you’re looking for your first credit card, let me give you some advice.
• You want to pay each balance off on your credit card in a full amount. Meaning, if you put on $75 this month, you will want to pay off $75 all at once. If you don’t pay it off in full and let’s say you only paid off $30, you will get interest on that last $45. This can be very pricey over time and that $45 will no longer be $45, but more instead next month.
• Never go over your credit limit, if you do, you will most likely get charged a fee.
• Don’t ever miss a payment. Do all that you can to make sure you know when to pay your bills! Whether you set a reminder on your cell phone or you mark it on the calendar. Make sure you pay it on time so that you don’t hurt your credit score.
• You also want to make sure you get a credit card with good benefits. If you’re going to stick to one card, you might as well get treated well and rewarded.
This is what your card should entail:
• Find a card that has a low number of fees or better yet, one that doesn’t have any fees!
• Stick with a company that has good customer service. If ever you have a problem, you want them to treat you well.
• Look for a low interest rate in your credit card. Anything over 20% is getting too high. Look for the lowest one possible.
• Also, look to get rewarded for each dollar you spend. Some credit cards will give you one point per dollar spent. Once you’ve earned enough points, you can then turn them into gift cards, prizes, donations, or even money towards your bill sometimes.
• If you don’t get a credit card that gives you points per dollar spent, make sure you get a card that gives you cash back. Some cards will give you up to 5% cash back on each purchase you make. This is a great way to save money on everything!
Looking for a credit card can be tough the first time around. We’re not too sure what to look for and we don’t know what everything means. Unfortunately when we’re naive about credit cards, the companies can take advantage of us! I say as long as you consider the points above, and you don’t ever spend more than you make, you can only really benefit from using a credit card!
