Using a credit card is good to easily finance your project or even your journey. They make it easier to travel and even be a good thing to bank on in time of emergency. But just like thing have both the good side and bad sides. Credit cards can also be your shortest routes to making a costly financial mistake.
One of the commitment to make as you apply for your first credit card is to ensure you use your card wisely.
Here are 5 Points to Note When Applying For Your First Credit Card
1. Locate Cards with the lowest available Interest Rate
The first and the most important thing you need to check properly is the interest rate attached to the card. look at is the offered interest rate on the credit card. If you do not plan to carry a balance then been aware of the interest rate is crucial. Locate the card with the lowest available rate.try to avoid anything above 20%.
2. Try to Ignore Cards With Annual Fees
Look for cards with no annual fees to begin. It is quite easy to locate one. Look at your bank or credit union to see if they have a card without an annual fees
3. Look for Card With Good Rewards
Taking advantage of the rewards that are available to you from a good Cashback card is a great place to start. They are straightforward and very easy to claim the rewards, though it for those that have low credit.
4. Avoid Store Cards
Store credit cards are very easy to get approval for but they have the highest forms of interest rates. The use of the store credit card is limited to the location where the issuer provides. It cannot help you in times of emergency.
It is often better to get a credit card that can be used anywhere if you are applying for your first credit card.
5. Understand the Penalties
Many credit cards today will charge late payment fee and also raise your interest rate once you make credit card payment late. So familiarize yourself with the penalties are for late payments and also when you exceed your balance.
The point stated above is essential to making the right choice. Pick the cards with the best options available to you. Don’t be late with payment as much as you can.