Choosing Your First Credit Card
If you are a first year college student at a university, you probably get at least 5 opportunities a day to get a credit card. If you have resisted that free t-shirt or frisbee, good for you. You should base getting your first card on solid information, not free swag. Here are some things you should be aware of when you are ready to take the plunge and get your first credit card.
Most cards today offer added benefits such as points that can be used for airplane tickets, gasoline or other things. Some cards even give a percentage of your purchases to a charity or school of your choice. If you have student loan debt you may want to think about getting a Upromise credit card. For every purchase you make, a portion is added into an account that can be put toward your loans. There are a lot of card benefit options out there. Choose the one that is right for you.
Inquire about fees and charges. There may be an annual fee, an application fee, an over-limit fee, a late-payment fee and/or other miscellaneous fees. It goes without saying you should avoid a card that has a lot of fees. Compare these fees to other cards to see if the card is a good fit you you.
A good idea is to have the credit companies come to you. If you get credit offerings often, either from on-the-street solicitors at universities or card offerings through the mail, take the time to research them. You should be able to find a good card with low fees but watch out for the high interest rate after the introductory period is over.
The number one rule for getting a credit card is to always be aware of the interest rate. If offered a promotional interest rate when you first signup, be aware of when the introductory rate will expire. Most cards apply payments to lower interest charges first, leaving your higher interest charges to collect interest until the entire amount is paid off. Some cards charge interest from the date of purchase and others charge interest from the billing date.
Be aware of all the rules and terms before you sign up for any card. And always, always always pay all of your bills on time to avoid paying interest.
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Your advice is good…
It is always best to take a closer look at the details that are associated with a credit card offer to avoid getting into something that really isn’t best suited to meet your needs.
It just takes a few minutes to read the fine print. And it is well worth the time that it takes to do it!