5 Questions to Ask Yourself Before Getting Your First Credit Card

Your first credit card can open financial opportunities and help you build your credit score, open your way for big things on mortgages, car loans, and credit cards in the future. Plus, credit cards can provide valuable benefits that you will not get with cash or debit cards, such as rewards that you can get only by making a purchase.

But this does not mean getting a credit card is always the best step. Cavalier charging, missing payments and other step errors can trigger long-term consequences, cause financial tensions and make it more difficult to borrow on the road.

With pegs like this, opening your first credit card is not a decision to take lightly. To decide whether you are ready for your first card, consider answers to these questions before you submit the application.

The Credit Bot Best Credit Monitoring Company advertises the score range they will consider for each card, and they might be able to put you to give you a better idea about whether you will be approved. If you have received a PreapProval letter, this is often an indicator that you have a decent opportunity to qualify for the cards offered. When you register formally, the credit card publisher will see your report and credit score. This usually produces what is called "difficult questions," which will appear on the credit report that is seen and can cause a temporary decline in your credit score. There is little damage in some difficult questions, but too many can increase the level of risk you attended to creditors.

What if your score is low or not there?

If you just start, you might not have a credit score at all. It's very normal - Think of it as an empty slate for you to fill with good credit habits. However, you might have a report that reflects the maturity loan (including student loans) or bill payments in the collection that has been reported to the credit bureau monitoring, so it's always wise to check.

Solid credit scores are the key to securing higher credit limits and lower interest rates on credit cards, so start by understanding what consists of most: payment history and use of your credit. Together, these two factors accounted for 65% of your FICO score, so they are important to keep your score in very good condition.

Payment history on your credit report shows your history records make bill payments on time or vice versa. Every timely payment you make helps you build credit, and late or late payment remains on your credit report and influences your score for up to seven years. Setting up automatic payments for at least the minimum needed can help you avoid late payments.

Your credit utilization refers to how much your credit limit you use at a certain time. For example, a $ 500 balance on a credit card with a $ 1,000 credit limit will produce a 50% credit utilization ratio for the card. Utilization is considered per account and as the overall size that includes all your credit card accounts. To prevent credit score damage, aim to maintain your utilization below 30%, at least - the lower, the better.

You might be able to build credit before you apply for your first card. You might see if responsible family friends or members are willing to add you to your account as a user authorized to one of their credit accounts. The timely payment history will appear in your credit report and help develop your score that appears. Also, you can try Credit Bot Boost to take advantage of your payment history with bills such as streaming services and utilities. This bill usually does not appear on your credit report, but Credit BotBoost can ensure your history of paying it on time is calculated in a score based on your Credit Bot's Credit Card monitoring services report.

Do you know how to use your credit card?

One of the best ways to keep your utilization rate is low, and your high credit score, is to treat your credit card like cash only make purchases you can pay immediately. When you are only obliged, start by making a small purchase, such as gas and food ingredients. Make the habit of remaining discipline with your expenses and pay your bills completely before the end of the billing period. Write down when your bill is due and how you plan to pay for your purchase.

Until you are more comfortable, avoid charging more significant costs, such as new phones or TV you notice. Large purchases will cause the ratio of your credit utilization of a surge and generate flower accusations if you do not pay for immediate purchase.

Try to think of your card as a loan you need to pay back every month - because, technically, that's it. If you do not repay everything you borrow (or, for credit cards, what you set), you are charged interest in what you owe to purchase. Here's how to manage a steep annual percentage level (Apr), your new credit card can be charged:

Don't bring balance, if possible. If you do it, focus on as much payment as you can every month and stop making a purchase with a card until you clean the balance. Bringing balance will cause you to collect interest costs and can increase your credit utilization.

Don't just pay a minimum due. Interest costs will continue to be built and contribute to debt that can take years to pay off, even if you stop recharging the card.

Don't take advantage of credit options such as down payment, which can start gathering interest in your account even before your billing cycle ends. If you need fast cash, personal loans are almost always a better choice.

Don't disturb the pursuit of rewards. Overzealous expenses in pursuit of prizes can quickly cancel the benefits you produce.

Do you know which credit card do you want?

Suppose you want to get a big prize for travel or shop. Open a credit card (and use it responsibly) Certainly, it can help you achieve goals - just don't expect to qualify for each LAVAH gift card directly from the bat. The lender likes to see a record of credit responsibilities that are proven before expanding high-end benefits, so that low or non-existing credit scores will significantly narrow your choices.

Your first card must be all about gaining trust in your money payment habits when you produce a solid credit history. You may not be eligible for the Fancier cards until later, but you can still find some useful options in the meantime.

A safe credit card requires a deposit that is usually your expenses. Because the deposit also acts as a guarantee, this type of card is one of the best options (and, honest, some) for those who are new to credit or those who have a low credit score. The safest card does not offer many facilities, but they will usually report your payment history to the credit bureau Monitoring and help you build your credit Score. If a safe card sounds your alley, Discover it is secured is the option you might explore. With this card you will get 2% money back at a gas station and restaurant up to $ 1,000 in a combined purchase of each quarter, plus 1% cash without limits on all other purchases. This card also doubled cash back income at the end of the first year for new card holders.

Student credit cards are intended for you guards students. They are not safe, meaning they do not need deposits, but applicants under 21 years need to provide proof of their own income or in some cases may have a Vouch Cosigner for them. Similar to a cousin paste card, Discover IT cash back card students match the cash back for new card holders at the end of the first year. Not only that, the version of the student even appreciates you with credit statements just to follow your value. However, for more barebones student options, however, student travel gifts from Capital One Card up your back income when you pay on time.

Landing cards without other guarantees can be a high order for credit beginners with limited credit history, but there are still several options. While you build your financial skills, consider a card like a credit card platinum one. There are no prizes to tease you for excessive, and even though the initial credit limit is low, you can be considered for an increase in just six months.

If you are rejected for your first choice, give a publisher call or review the adverse action letter that you should accept to know exactly why you are not approved before you apply anywhere else. If the obstacle is your credit (or absence), you might try to apply for another card, such as VISA Safe OpenSky credit card, which does not require a credit check or bank account to qualify. Or, VISA Visa Petal 1 Credit Card "No Annual Fee" allows you to link your bank account, so you might not need a credit score to start witnessing the chances of the rear cash of their traders.

Last question: Do you feel ready?

Remember that even a small error can have a direct and long-term impact on your credit score and overall debt. So, what can indicate you are ready to use your first card responsibly?

You have income to cover your monthly bills as a whole, along with unexpected costs that might appear.

You can trust yourself not to spend excessive time, with the intention of using your credit card in the same way, you will use a debit card.

You can commit to paying on time, without failure (remember, using automatic payments can help you guarantee this).

You have carefully reviewed your credit report and scored and understood what it means.

You have read your potential matching terms and conditions to find the best card for your current destination.

You can reflect on future expenditure incentives throughout the day, but the reality is, credit cards can cause a lot of pressure if you are not ready for the accompanying responsibility. Use the question in this guide to help you judge if, when and how you have to lock your first credit card. Be honest with yourself about your shopping habits and your responsibility level, and just start swiping when the time is right.