Getting Your Very First Credit Card

If you are getting ready to apply for your very first credit card, there are several things you should consider when choosing the card to apply for. While your lack of credit history will limit the cards you are eligible for, you should still be selective in the card you choose in order to ensure you get the best deal possible. Here are a few things to look out for:

• Fees – all credit cards have fees associated with them. An annual fee is a fee you will have to pay every year, no matter what. There are many cards out there that do not charge annual fees. So, unless the card really has some great perks, skip it if it charges one. Other fees are over-the-limit fees and late payment fees. Check out how much these are, but you won’t have to worry about them if you use your card responsibly.
• The Grade Period – the grace period is a period of time during which you are not charged interest for the purchases you make with your card. Some cards will start applying interest as soon as the purchase is made. The longer the grace period, the better. Most cards have grace periods of 20 to 25 days.
• Interest Rate – if this is your first credit card, you will probably have to put up with having one with a higher interest rate. Look for a card with an introductory offer that provides you with 0% interest for a certain period of time. Then, when the introductory period is over, beat the credit card companies at their own game and pay off the balance in full at the end of each billing cycle. That way, you won’t have to worry about the interest rate!