Getting your first credit card can be an exciting moment in your life. But it’s also very important in building your credit history. When someone turns 18, one of the first things they do is apply for a credit card. But if you don’t have any credit history, that task may be difficult. Today, we are going to learn some tips that will help you through this process and get your first line of credit.
Make Sure You Have Enough Income
Before even thinking of getting a credit card, make sure that you have enough income. There are certain income requirements that credit card companies require. If you can show that you have enough independent income, it will better your odds of getting approved. Most credit card companies will require that you have an income of at least $10,000 a year before getting your first credit card. If you don’t have this income, you may want to consider getting someone to co-sign with you. This will ensure the credit card company that they will be able to get back the money they’ll loan you.
Be Careful Not to Over Do It
Some people who are excited about getting their first card will sign up for dozens of applications. Many are thinking that the more they apply for, the better their chances of getting approved for at least one. But applying for credit cards is not like applying for a job. In fact, putting in too many applications will hurt your credit score. When a credit card company runs your credit history, it’s called hard inquiries and can bring down your score if you get turned down. So, instead of being accepted for one card, you’re actually reducing your chances of getting accepted at all.
Read the Terms of Conditions Before Getting Your First Credit Card
When you receive a credit card offer in the mail, it may seem like a great deal. But before you sign up for the card, make sure that you read all the terms and conditions first. These terms should be on the back of the offer and contain important information about the card. Try to avoid cards that charge yearly fees and find a card with the lowest possible APR. The annual percentage rate will determine the amount of interest you will pay. This will help save you tons of money over the years and allow you to choose a card that you can actually afford.
Be Aware of Special Offers
Often you will receive special offers by mail in your email. These offers seem great but there may be a catch. As we have stated above, always make sure to check the terms of conditions and pay close attention to the APR. Many special offers will have a super low introductory rate. For instance, the opening APR may be just 5% or less on purchases made within a certain time frame. But, if you carry a balance on those purchase, that APR rate will likely go up to 20% or higher depending on the fine details. So always keep this in mind when signing up using one of those offers.
These simple tips can help you find the perfect credit card for your needs when getting your first credit card. Remember that owning a credit card is a huge responsibility, and making a timely payment is important. If this is your first credit card, this will probably be the first step in building your credit history. So, make sure to do your homework before making any final decision. With the right information, you will be able to quickly find a card that will work for you!