Comparing First Time Credit Cards
A credit card is plastic money in hand that gives us flexibility to buy anytime anywhere if it is accepted. It works on simple credit theory and we are given a buffer of few days to pay back the amount that is spent using credit cards.
There are many things to look before you apply for first time credit cards so that your credit card works exactly as per your expectations and knowledge. First thing to look for is annual fees. There are many credit cards these days that have no joining or annual fee. Some companies ask you to pay certain amount one time and get in return some gifts. Some charge annual fees and give you benefits like business lounge access, free club entry, more reward points on shopping, on certain petrol pumps, with certain air lines etc. It purely depends on individual requirements which one to choose. If one does not travel frequently and does not visit clubs, opting for a credit card with zero fees is the best choice. Always read the offer clearly. There shall not be any hidden cost. Credit card acceptance is also very important parameter.
Second thing to look for is credit period. Credit period is the buffer days during which you can pay back the amount spent without any interest. There are certain companies that have buffer days of even 52 days due to their statement cut-off dates. Choose the card that offers the optimum buffer period.
Third thing to look for is the interest that credit card company charges if your payment is not made by due date. Interest rate varies from company to company and choosing the lowest interest rate is always desirable.
Forth thing to look for is reward points structure. Some reward 2 points for certain amount of spending on card, some offer 4 points for same amount.
Last thing to look for is credit card limit, cash withdrawal limit and acceptance of all kinds of payment options. As per my personal experience, the best credit card is the one that is best for you. Always choose an optimum credit card that fits to be your personal best credit card. Be prepared before buying credit card first time
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Students Applying For First Time Credit Cards
In today’s world, having a credit card is a luxury. Credit cards are a great convenience, meaning that you don’t need to worry about cash when making a purchase. Although some first time credit cards have strict requirements, there are a lot of manufacturers that are giving both high school and college students the chance to get their own credit cards. Student credit cards can be used the same way as a traditional credit card, although they do come with certain restrictions and limitations that other credit cards don’t normally have.
A lot of companies and banks that offer student credit cards will normally need a co-signer as a form of insurance or collateral. This person will sign on the loan with the student, and will be the person the company falls back on if the student is unable to pay the bill. Normally a parent or guardian, the co-signer is considered to be back up and a peace of mind for the issuer of the student credit card, as they can always count on the co-signer with good credit to pay if the student can’t.
Normally, the APR or interest rate is higher with student credit cards, which helps to minimize the risk for the company. The spending limit is also different with these credit cards, as most are between 250 – 800 dollars. The reason for this, is because most students have established any credit, and therefore won’t have a great credit rating. Although the spending limit is obviously lower with these cards than other credit cards, they will still help students establish credit.
Students who plan to make a large purchase, can greatly benefit from using student credit cards. To make large purchases, you’ll need good credit – which is where a student credit card can really help out. You can use these credit cards as a stepping stone to building credit, and establishing a good credit rating. If you can get your credit rating high with your credit card, you’ll then be able to be approved for much higher loans in the future.
Student credit cards can also help students gain a sense of responsibility. The card works just like any other credit card, although the spending limit is much lower. Once the student has mastered usage of the card, he or she can manage money much better later on in life. These cards are great for students to have, and can teach them money skills that will last a lifetime.
Just like traditional credit cards, students should also know that student credits cards can be dangerous. Although they are great to have, there are pitfalls such as overspending. If students spend more money than they having coming in, they will be unable to pay their credit card bill, which will then affect their credit. If the company goes after the co-signer to pay the bill, it could also affect their credit as well. Therefore, students should always have a budget in mind before they start using their credit cards.
All in all, student credit cards are great to have. For high school students or college students, these credit cards are a means of freedom, and a way to teach responsibility. They can come in handy during emergencies, which is reason enough to invest in them. If your son or daughter is in school right now, you should look into student credit cards. They can help your child to establish credit – which will take them farther wherever they go in life.
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Using First Time Credit Cards
First time credit cards are making it too easy for people to lose track of their financial status. As we move away more from using actual money and towards plastic cards to pay for the things we need in life, we forget that we may not have the money for those things we want.
The American economy is in turmoil for quite a few different reasons, but the one I think that’s causing the most damage is the average person doesn’t want to wait until they have the money for that flat screen TV or whatever else it may be, they go out and pay for it with a credit card.
Using your credit card can be damaging to your finances because you really don’t see the the bill as a $3000 charge, you look at it as a monthly payment of $150 which many think that they can afford. The problem comes in when you look at how much you actually pay for that item when you finally pay off the entire bill.
Why is it that we are losing focus on the fact that we can’t really afford something and instead say that we deserve the things we want without saving the money first?
The credit card companies make it too easy for us to use the cards. They will also make it easy for you to pay small amounts each month. As a matter of fact, the other day I received my statement from a credit card company. The total bill was only $39. The company stated that the minimum amount due was $0. They didn’t want me to make a payment so they could charge me the 10% interest so they can make some money.
I pay my cards off in full every month. The only reason I have credit cards in the first place is to have a good credit rating for when I need it for investment purposes. If we start living within our means, we will improve the economy as a whole in this country.
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- Comparing First Time Credit Cards
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- Applying For First Time Credit Cards
- First Time Credit Cards For College Students
- Considering First Time Credit Cards
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- Comparing First Time Credit Cards
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