Financial advisers sometimes advise against credit cards because many individuals get caught up in a cycle of debt due to irresponsible management of their card accounts. However, a consumer may choose to open a first credit card as a way to establish a credit history. If you're trying to get your first credit card, keep a few tips in mind to ensure that you get the best deal possible.
Use Online Services
While you may receive attractive credit card offers in the mail, you can also use credit card websites, like CreditCardGuide and CreditorWeb, to find the right first card for your needs. These websites compile current lists of offers from the major credit card companies and allow you to compare them based on a number of factors. Sort the card offers by annual percentage rate as well as by accounts that offer cash back and gas and airline benefits. You can choose your credit rating level (poor to excellent) when searching for your first card online.
Examine Introductory Rates
Check for special introductory rates when looking for your first credit card. Some credit card companies offer low or zero percent interest offers on purchases or balance transfers for the first few months that the account is open. In some cases, creditors will continue the low rate as long as you abide by certain rules of the account.
Look at the Fine Print
Before you agree to open the credit card account, read the fine print in the card agreement. It will list all of the applicable costs associated with the account, including late and over the limit fees. It will explain what actions the creditor will take in case of a default on the account. The credit card agreement also may contain information about fees you may not expect, such as annual or inactivity fees.
Warnings
While a credit card offers certain benefits, you shouldn't feel pressured to get a credit card unless you're absolutely sure you can properly manage this type of account. Use the account to your benefit by keeping the balance low or at zero to help boost your credit score. Pay off any balance you've accumulated for the month before the end of the billing period, to avoid finance charges. Also, remember that while introductory offers are attractive at first, they are often traps to lure you into spending and building up a large balance over time.
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