Considering First Time Credit Cards
First time credit cards are easy to get in our society today. It’s easy to rack up debt without thinking about the ramifications, and file it off in our minds as ’someone else’s money’. Our debts accumulate, and we slowly get buried alive under an increasing load of debt. So before you go running off to apply for that next Visa, or another MasterCard, give these things some thought.
Every time you apply for a credit card, your credit rating takes a hit. This is what people don’t tell you. You only have so much credit that creditors are willing to extend to you. Many is the person who has gone out in search of a mortgage, or a loan for a car, only to realize that their ten thousand dollar line of credit at Home Depot stands in the way. This is one of the most overlooked aspects of credit, and it hurts people all the time.
Don’t apply for credit you don’t need just because of a cheap introductory rate, or tales of financing. Get a bank loan if you must. You’ll find the interest rates lower, and the terms more reasonable. For that matter.
Don’t get store credit cards! People go applying for credit cards, and end up with a Sears credit card, or a Home Depot credit card. What people may not realize when they sign up for these, is that they carry an annual interest rate of up to 29 percent, and on occasion, higher! A simple renovation, costing a thousand dollars forgotten to be paid off by the end of the six month financing, can carry penalties carrying up to fifteen percent of what you paid in the first place, just in interest, which of course compounds over time, which leads me into the point of compounding interest and minimum payments.
They’ll get you, believe you me. Miss a payment, and it adds up quicker than you might realize, sapping your money away at an alarming rate. Find a nice low interest credit card, and stick with that one, paying off more than the minimum payment required on a regular basis. You barely pay the interest owed on the cards, otherwise, and you end up paying several times what the purchase was actually worth. You’ll be glad you when you don’t open your statement to find your five hundred dollar purchase has cost you over a thousand!
Credit cards are great in moderation, and used intelligently, but one must exercise caution, lest they fall into the trap of heavy debt. Especially in these uncertain economic times.
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Three Things To Consider Before Applying For A Credit Card
When applying for a credit card, there are a lot of things to consider before swiping it through your favorite place to shop. While credit cards can be incredibly convenient and offer rewards to customers, there are a few things to consider before applying for one. It should never be a decision made lightly and thinking a few steps ahead can save you from a lot of frustration and heartache.
The first thing to consider is if you can easily make the monthly payments. While it may seem simple only to buy needed items and have a card just in case of an emergency, it rarely works that way. Often times a nice pair of shoes gets swiped on the card, and soon all those little purchases add up to a big monthly statement. While most cards have a low minimum monthly payment, it’s not simply for customer convenience. The remaining balance is charged interest, and the more that’s on the card, the more money the credit card company will make. The forty dollar shoes may end up costing over sixty dollars if you can’t afford to make larger payments, so always make sure you have enough available income to pay more than just a minimum balance.
Another thing to consider is if the convenience and rewards for using a card outweighs the interest rates. If you can afford to pay off most or all of the balance every month, it may be a wise choice to apply for a credit card. Many cards, such as a First Savings credit card, offer cash back, travel points, or a variety of other incentives and goodies. Also look at the interest rates and make sure that you’re not “paying” for those rewards in all the interest you pay to the credit card company. While a set of plane tickets to Florida may be a nice perk, if you’ve paid over 800 in interest to get them, it may not be worth it.
A final thing to consider before applying for a credit card is if you really need it or not. Some people prefer to have just one or two cards, while others have wallets overflowing with specialty credit cards for stores. Look at what cards you already have and whether or not you need another one, or are ready to apply for your first one. It’s very easy to run a large amount of debt when you have more than one card, as most people don’t keep track of every purchase on every card in one central location.
Overall, first time credit cards can be a great addition to any wallet when used carefully and responsibly, one just has to consider if they are ready for that task or not.
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First Savings Credit Card
In todays economy one may be inclined to eschew credit altogether but perhaps a small balance credit card set aside for emergencies is in order. A First Savings credit card is from a reliable insured credit company with achievable payment options and the financial grounding needed to bring your family into the twenty first century.
When registering for a credit card one choose between low interest options and the many and exclusive benefits that come with higher interest options. Choosing the option that gives the highest return is a highly individualized process that should be well thought out and researched. For example if one prefers to use a credit card to make everyday purchases like groceries or household supplies then a points programs may bring benefits that your family will actually use.
Another thing to consider is that a benefits program with a high interest rate is not suited for those of you who prefer to only make the minimum payments every month. The rewards program options for a credit card comes with a higher interest rate which will likely equal the cost of the rewards.
The best method for getting the most benefit out of your credit card is to use it for everyday purchases but then be sure to pay off the entire balance every single month. By managing your finances this way and utilizing your card for normal habitual purchases already a part of your budget, habits and even family needs you will avoid having to pay interest on your new First Savings credit card, not to mention avoid making non habitual purchases for unnecessary items that in reality you and your family simply cannot afford. By using this method every month your First Savings credit card will not only give you the benefits of having an easy to use credit card without the normal associated costs, it will also give you the added security of cash and will even make you money in the form of rewards points which can be used for cash back or free items your family already needs and uses on a day to day basis.
If you are not sold on First Savings, your honest family credit provider, please call First Savings your self and a customer service representative will gladly answer your important questions.
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