Best Credit Cards Offers for First Time Buyers
Starter credit cards can be an extremely useful financial tool if utilized correctly, but an equally dangerous obstacle if misused. However, using them wisely and self-contemplating the expenses involved can assist young adults or even students get off on a good start towards building good credit while still in college! Here’s how to make that transition as smoothly as possible.
First, be careful of what is on your current credit history. The most important factor for any credit history is the amount of debt you have incurred. This will include any loans, credit card debts, auto loans, etc. The higher your total amount of outstanding debt, the lower your starter credit cards score will be. Any time a lender asks for your credit history, it is vital that you provide it as soon as possible.
Secondly, if a bank offers you starter credit cards that offer the lowest interest rates, don’t sign up. Banks with the highest approval odds also have the lowest interest rates. If you are interested in one of these low interest cards, try to wait until you’re a couple of years out from graduation before applying. This will give you enough time to build your credit score while paying the lowest fees and rates.
Next, only apply for starter credit cards when you are sure that you can meet the requirements. There are several things that banks look at when approving starter credit cards. The biggest thing is your ability to pay bills. If you have bad payment history, you probably won’t qualify for a starter card. Another thing banks look at is your income. Banks only make starter credit cards available to people with at least their parents’ salaries.
Now, here is where you start to get tricky. There are starter credit cards for the first time holders with zero annual fees, but they come with high interest rates. The best way to make this tricky situation work for you is to start building up your credit score slowly. This means paying bills every month and making on time payments.
You then need to decide between a secured card or a debit card. A secured card comes with a higher interest rate because of the risk of your money being invested in something that you might not be able to pay off. However, the rewards you get with these credit cards far outweigh the risk. It is best to pay off the balance in full every month and to avoid putting any money on deposit into your account. Also, these secured credit cards usually offer higher credit limits and usually lower inactivity fees.
If you’re thinking about getting one of these best credit cards for the first time, then it’s important that you do your research before choosing a company. Read some online reviews and ask friends who have one if they have a good experience with their company. Also, don’t be afraid to look around online and compare a variety of different companies. You should always do your research so that you can choose the best credit card offers for your personal needs.
Once you have found a few starter credit cards that offer the features you need, you will want to take the next step to start building your credit rating. It is best to apply for a credit card that offers no annual fee and offers high credit limits. Then, make sure that you pay your bill on time and with the highest approval odds. As long as you make your payments on time, then your credit history will build over time. Then, when you’re ready for bigger things, you can apply for the best credit cards for your largest balance!