Getting Your First Credit Card? What You Should Know


If you are thinking about getting your first credit card, you may be feeling excited and like you are finally a grown adult. And while getting a credit card is exciting, there are some things you should know before you open your first credit card account. 

Pay Attention to Annual Fees

When it comes to credit cards for beginners, most have some kind of annual or initial fee for opening the card. These fees can range from $25 or less to $100 or more. Pay attention to these fees when you are planning to open a credit card account. You'll probably want to choose the credit card option with the lowest annual fee or that offers no annual fee at all if you can find one. 

Also, some cards will charge a monthly maintenance fee for the card. This is typically just money out of your pocket that you do not need to be spending to have a credit card. 

Look for the Lowest Interest Rate Possible

In addition to looking at fees, you also want to pay attention to the potential interest rate you will be paying for your credit card. It goes without saying that the lower the APR, the better the card will be for you. Most beginner credit cards have fairly high interest rates, so pay attention to that. 

Shop around and compare interest rates before you complete any applications. Apply for those with lower interest rates before you consider those with the highest interest rates. 

You May Need to Start with a Secured Credit Card

One way to get a credit card with a better rate and a lower or non-existent annual fee is to opt for a secured credit card. A secured credit card is a card that you essentially put a down payment on. You pay $200 or maybe even $500 and you get a credit card with a credit limit matching or possibly exceeding that amount. 

If you keep that card in good standing and don't exceed your credit limit, you could eventually upgrade to an unsecured credit card. If you are able to upgrade the card, you will generally get your deposit back for the secured credit card. 

You Should Plan to Pay Your Balance in Full Every Month

If you want to avoid paying interest altogether, you should plan on paying your credit card balance in full every month. That way, you will not only keep your card in good standing, but you will also avoid having to pay more than you spend on your purchases. 

Do not charge more than you can pay off in a single month unless you have an extreme emergency situation. This will help keep you on track with your credit card and ensure that you are not losing money by having one. 

Now that you know some of the important facts to keep in mind when you are getting your first credit card, you can be sure you are smart about the credit card that you get. 

To learn more, contact a credit card provider.


8 June 2020

The Road To Becoming A Homeowner

I always wanted to buy my own home and after saving enough money for a down payment, I decided that it was time. Before I started looking at houses, I talked with a loan officer about financing. I wanted to know how much money I could borrow so I could look at houses in that price range. I was very happy after my meeting at the loan company and I was ready to start house hunting. My name is Jarod Spangler and I'm now a homeowner. If you have the dream of owning your own home, I think you'll find my blog of help to you. I've documented my journey of saving money, securing a loan and purchasing a house. To help you become a homeowner too, I'm offering advice and tips of things that I've learned along the way.