Planning for getting your first credit card may perhaps be confusing as you will find excess of choices that don’t make the decision at any ease. At this time you must know about the credit card and their basics correctly. After knowing all the basics then later move on to the bigger decisions.
For the starters, you must know why you need a credit card. Your reason may possibly be anything, but you need to know that undoubtedly in order to get a card that suits your needs flawlessly. Here’s everything you need to look out before getting your first ever credit card.
Yearly Fee
There is a fee for credit cards that are charged annually that ranges from bank to bank. Since there are a lot of choices that are offered because of which it’s better to go for the one that charges no yearly fee. While applying for such credit cards you should make sure about every terms and conditions regarding it. For this read the terms carefully as some credit cards start charging an annual fee from the second year.
If you are one of those who is getting a credit card in order to earn rewards you can then opt for the one with yearly fee but only when the sum of the rewards surpasses the fee. So you should choose it wisely.
Credit Limit
Usually, first-time credit card holders get a comparatively smaller limit. If you are somebody who wants a card to build credit then it won’t be a problem, but it may possibly be a concern if you want to create a great buying so do check your credit limit. Typically, after a year of using your credit card as well as paying on time, you can demand a rise in credit limit.
Rewards
Credit cards also provide rewards that are limitless and are range all over several sectors. So find one that line up with your requirements and has offers on most of the things that you are interested in. It can be on flights, shopping, cash back, hotel bookings or gift cards. So, you must check how to redeem them all the same time as some of them may possibly have an expiration date.
Interest Rate
As a first-time credit card holder, you may possibly have to deal with an interest rate that is on the greater side. Even though, if you pay your credit card bill in complete every single month then you really don’t have to worry about it. But most of the time, there are certain times where timekeeping takes a backseat. So if you plan to carry a balance, keep it to the least possible and find the lowest rate accessible. There are also a small number of credit cards that provide 0% interest for the first 6 months or else 0% interest for balance transfers within a specific period of time. So make use of these preliminary proposals to your profit.
Other Fees
Before buying a credit card, you must make sure that what are the additional fees that the credit card is going to charge on you.
For example, for making the late payments you will be charged certain amount. In the same way, there may perhaps balance transfer fees, cash loan fees and foreign transaction fees as well as over the limit fees. So, before making the ultimate choice know about everything in which you are getting into.
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