There's nothing quite like holding your very first credit card. Within this small piece of plastic an entire world of financial possibilities is revealed. While credit cards offer a host of benefits and advantages, the moment you begin your search you must be dedicated to not only selecting the best card, but using this card wisely. Remember, in the world of credit, decisions you make today will haunt you for years to come. Therefore, move forward with this financial milestone with careful considerations.
Review Interest Rates
When reviewing credit card offers, it's essential you choose one with the lowest interest rate possible. Instead of filling out online applications, take a moment to visit your bank or credit union. If you've dealt with the same financial institution for at least a year, with no issues relating to your account, you may be able to garner a much lower interest rate when compared to blind credit card shopping. Remember, whenever you apply for a credit card your credit score takes a hit. Therefore, keep your applications below three - ideally, you'll only need to apply for one credit card according to Your 650 Score.
As a general rule of thumb, try to find a credit card with an interest rate below 20-percent. Doing so will ensure your monthly payments are reasonable while simultaneously eliminating the amount of money you spend on interest instead of on your principal balance.
Reward Programs
While this may not be the first qualification on your checklist, rewards programs can be quite lucrative. Try to locate a credit card that offers statement credits, which in a way translates into free money. With every purchase, you should earn a certain number of points, which may be added to your account as a form of "payment." While you should never expect to pay your entire bill with these rewards, you might as well get more for your money than a monthly bill.
Once You've Been Approved
While some may think the act of finding a credit card is the hard part, the true challenge comes after you've been approved. With the ease of shopping and spending money, it's no surprise new cardholders are vulnerable to high interest rates and monthly payments. Keep your minimum payments at the minimum while protecting your credit score by only charging up to 30-percent of your total credit limit. At the end of the month, pay off this balance. This activity is regarded as acceptable spending behavior, and while your credit history may be minimal, sticking to this spending/paying formula garners the highest monthly credit ratings.
Review Interest Rates
When reviewing credit card offers, it's essential you choose one with the lowest interest rate possible. Instead of filling out online applications, take a moment to visit your bank or credit union. If you've dealt with the same financial institution for at least a year, with no issues relating to your account, you may be able to garner a much lower interest rate when compared to blind credit card shopping. Remember, whenever you apply for a credit card your credit score takes a hit. Therefore, keep your applications below three - ideally, you'll only need to apply for one credit card according to Your 650 Score.
As a general rule of thumb, try to find a credit card with an interest rate below 20-percent. Doing so will ensure your monthly payments are reasonable while simultaneously eliminating the amount of money you spend on interest instead of on your principal balance.
Reward Programs
While this may not be the first qualification on your checklist, rewards programs can be quite lucrative. Try to locate a credit card that offers statement credits, which in a way translates into free money. With every purchase, you should earn a certain number of points, which may be added to your account as a form of "payment." While you should never expect to pay your entire bill with these rewards, you might as well get more for your money than a monthly bill.
Once You've Been Approved
While some may think the act of finding a credit card is the hard part, the true challenge comes after you've been approved. With the ease of shopping and spending money, it's no surprise new cardholders are vulnerable to high interest rates and monthly payments. Keep your minimum payments at the minimum while protecting your credit score by only charging up to 30-percent of your total credit limit. At the end of the month, pay off this balance. This activity is regarded as acceptable spending behavior, and while your credit history may be minimal, sticking to this spending/paying formula garners the highest monthly credit ratings.
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