What To Look For In Your First Credit Card
Having a balanced credit report means having diverse kinds of debt. You may have avoided credit cards in fear of spending beyond your means, because you haven’t needed one or a history of late payments long ago. Either way having a good basic card active on your report is a good way to build up your credit.
Simple Fee Structure
When you are opening a new card for the first time or after a long time looking for one without annual fees is important. Annual fees are essentially yearly fees that are charged simply for having the card. That means you are charged whether you use it or not. Since there are so many options out there without annual fees it makes no sense for you to get a card with one at the start.
Take a look at the other fees related to the card as well and keep in mind your lifestyle. Will you be running into fees a lot? If so you might want to look for a card with fees in different areas. Avoid fees altogether is impossible but you can be smart about it to keep you on budget.
Chances of Approval
If you don’t have very diverse credit or are recovering from bad decisions long ago you may not qualify for a large number of cards. That’s okay! All you need is something basic to get your credit moving in the right direction. Look for one without all the bells and whistles. If you have a debit card at a bank start there and see what credit cards they offer.
If your credit is really limited you may be a good candidate for a secured credit card, which requires a deposit.
You are unlikely to get approved for a high limit so regardless of what card you get make sure you make on time payments and keep your balance low to show the lender that you are reliable and ready for an increase.
Ease Of Payments
Paying your monthly bill is crucial to building up your credit in a positive way. You want to make sure that you can easily watch your balance and make payments. Opening a card with a bank you already have a relationship with can make this easier for you to remember and accomplish every month.
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