It is easy to be overwhelmed when shopping for a new credit
card. There are literally thousands of cards to choose from.
But finding the right credit card for you doesn't have to be difficult.
Knowing what to look for can make the process a cinch:
2. Annual fees – Look closely at the terms
and fees disclosure for each credit card offer. All types of credit
cards can sometimes include a hidden annual fee. Avoid cards that
charge this fee unless you are sure the benefits would outweigh
3. Interest rates – You should also investigate
what APR's are offered on the credit card you want. See if there
is a 0% introductory period and what the APR will be after that
period passes. Most credit
cards have rates in 15% range, but some are as high as 30%.
You should also take a look at the balance transfer rates if you
are considering moving your debts to the card.
These three criteria can help you narrow down your credit card
search considerably. Remember, it helps you credit scores to keep
these accounts open for a long time. Be sure to pick a credit card
that you will want to keep open for at least a few years.
Opening your first credit card account can be exciting. But for
many people it is also a scary and sometimes frustrating process.
Establishing your credit doesn't have to be hard. Here are three
tips to make opening your first credit
Tip 1: Choose the right type of card – Opening
your first credit card is a snap if you choose an account designed
for new borrowers. If you have no previous credit history, a secured
credit card may be the best choice. This card requires a deposit
as "collateral" for the credit limit but works much like
a basic credit card in every other way. College and university students
will be easily accepted for a student
credit card even with no previous credit history.
Tip 2: Read the fine print – Now that you
have narrowed down your search to a certain type of card, you should
investigate each offer more closely. Read the "terms and conditions"
section of the offer to see if there are any annual fees, strange
charges or high interest rates that may make the card expensive
to use. You should also make sure that this first card will report
your account information to all three credit bureaus (Equifax,
Experian and TransUnion).
Tip 3: Apply for one card at a time – Be
patient when applying for a new credit card. Submit one application
at a time and wait up to three weeks to hear back from the company.
If you apply for multiple accounts all at once you could end up
with more cards than you wanted. If you are turned down for a credit
card, the creditor will send you a letter explaining why you were
rejected and will give you instructions for ordering a free credit
You're on your way to establishing good credit! Just remember to
use your new credit card responsibly. Keep those balances low and
pay your bill on time each month!
How you manage and use credit cards has a major impact on your
scores. The following common credit
card mistakes can damage your credit standing if you are not
careful. Learn how to avoid these credit blunders:
1. Maxing out a credit card – Having a high
amount of credit card debt in relation to your credit limits can
bring down your credit scores. 2. Avoiding credit – It's best to have 2-6
open and active credit card accounts on your credit reports. If
you don't have any credit cards, your credit
scores can drop. 3. Making late payments – Regularly missing
credit card payments can harm your credit scores for up to seven
years. 4. Closing old credit cards – Closing credit
card accounts can damage your credit scores. Especially, if
you are closing the oldest accounts on your credit report. 5. Accepting store credit cards – These types
of credit cards are usually not worth the 10% discount. Remember,
each card you open will appear on your credit history for at least
Don't make these credit mistakes! Instead use your credit cards
responsibly and you'll see your credit scores improve over time!