Credit cards for beginners full Guide

How to help Credit Cards?

A creditcard can offer many financial benefits. It can help you build your credit score, make payments more conveniently, and even earn rewards for your spending. But before you get one, consider whether you can use it responsibly.

This largely involves spending only what you can afford, consistently paying off what you owe, and making card payments on time. If you think you’re ready, here’s how to get your first credit card.

How to Choose the Right Credit Card?

First, choose the right type of card. While there are many different types, there are a few that might be a better fit for first-time cardholders.

If you don’t have a credit score yet or your credit is damaged, consider a secured card or student card. These generally come with relatively easy approval requirements. With a secured card, you’ll need to put down a security deposit before opening your account.

Requirements

A student card usually doesn’t require a security deposit, but it’s limited to college students. If you have a good credit score, you may qualify for a rewards card. It offers cash back on your spending, or points or miles you can redeem for travel such as flights and hotel stays.

How to Apply

Once you’ve decided which card you want, prepare the following before you apply: Basic personal and financial information. On your application, you’ll need details such as your Social Security number, gross annual income, and monthly rent or mortgage payment. A stable and sufficient source of income. Minimum incomes vary between issuers.

As a rule of thumb, you want your monthly income to comfortably exceed your monthly debt. This shows issuers you have the cash flow to pay their credit card bill. Know your FICO credit score.

This greatly affects which cards you’ll qualify for. If you’ve never had a credit card or loan, there’s a good chance you don’t have a credit score yet. If you need help finding your FICO score, check out our guides on finder.com. If you’re approved for a credit card, that’s great news. Now, it’s time to build solid financial habits.

Terms and Conidiation

Try to keep your card balance under 30% of your credit limit at all times. This will help you avoid debt, and it’s an excellent habit to keep as you score higher credit limits. Make your monthly card payments on time. This is essential to building good credit.

Don’t miss payments, as you don’t want to hurt your credit this early in the game. And strongly consider setting up automatic payments. Pay off your balance in full each month by your statement due date.

This will keep you from accruing interest and will go a long way toward keeping you out of debt. The healthier your financial habits are, the more likely you’ll be approved for better cards, with higher credit limits, in the future.

For more guides on credit cards and how to get started with them, visit finder.com today.