Because it is your first credit card, it is essential to start building credit initially to help you in the long run.
1. The Best Is Not Always for You
Having your first credit card makes you a novice in the world of credit cards. It makes you ineligible for credit cards with fantastic cashback, rewards, or substantial signup bonuses. The perks of 0% interest or credit miles are only available if they have a good experience credit score. The longer you use your credit card, the more perk you can get.
With your first credit card, you are generally starting from a much smaller scale – perhaps with a credit limit of only a few hundred dollars. As your membership with the credit card company and your income grows, it is more likely that you will be upgraded to the best credit cards.
There is no limit or credit history on your first credit card. Even though it is not as good as cards with high scores, various options can be considered while selecting a sound credit card for yourself. Many of the available options include:
• Student credit card – designed especially for college students
• Secured credit card – the card that involves an initial cash deposit
• Fair credit cards – cards received by those who have a decent credit score of about 630 to 690
• Pre-qualified credit cards – first application is made through banks or any other online tools.
2. Making A Secure Security Deposit Makes Getting A Card Easily
Many traditional banks are hesitant to give a credit card to someone with no credit history.
As a result, it will be difficult for you to get approval for your first credit card because you are an individual without any credit. It is much easier to acquire a credit card if you start by depositing a certain sum of money against your card.
These types of cards are specially designed for individuals with no or damaged credits. The first step to open the account with SBI to deposit the minimum value of cash against which your credit limit is decided. The security deposit amount is often considered a cash limit where the minimum deposit lies between $200 and $500. Most such cases allow deposits of higher credits.
If the applicant financially falls behind a particular payment, the payments will be adjusted from the deposit. If the applicant regularly stays within the limit of his order and keeps making deposits before the deadline, he has a very high chance of improving his credit scores exponentially.
3. The Future Of Your Credit Card
The prospects of building a credit depend solely on your first credit card. You need to boost your credit card, or else it might have the opposite effect. By the end of every month, there is a detailed report about credit cardholders who use their full payment.
4. Go Through All Rates and Applicable Fees
Before applying for a credit card, please go through all rates and applicable fees.
Various charges like Annual Feels, APR, or interests applicable but might not be known to you. Some credit cards carry an annual fee with them. Others may need you to spend a certain amount of money every month or year to qualify for a fee exemption.
Knowing how much you may need to pay, and the rewards and benefits you may qualify for will help you choose the right credit card for you.
5. Credit Card Fees Cannot Be Reversed
It doesn’t matter how much you like it or not; credit card fees are entirely unavoidable. Its attractive offers and startup packages do not help to avoid the annual fees. Various other fees are also applied under the terms and conditions facade, which are thoroughly needed for applying for any credit card.
6. Interests Are A Compulsion
Similar to the annual fees, this interest is entirely free of all transactions and limits. If there is a payment that cannot be done within the stipulated time, it will be carried over against the next month, and interest will be levied only on those products.
7. Paying Late Is Expensive
In case there is any debt or carryover of due, penalty, or late fees, these bills can pile up into a considerable sum, which might weigh pretty heavy in your pockets.
8. Going Close to Your Limit Is A Scary Thought
The maximum credit available with your credit card is the total amount that can be used by you. Keeping your expenses less than 30% of your limit is the easiest way to keep a check on your card and increase your credit score.
9. Credit Card Crimes Aren’t That Difficult
The fear of being defrauded or cheated upon has made many people reluctant to push their applications through their first credit card. Credit card company offers protection in case your credit cards are stolen; there has been a fraud.
10. Being Rejected for A Credit Card Is Also An Option
If your application for a new credit card is rejected, you can always write to the federal law inquiring the reason behind it. You will be issued a reply against your inquiry.