Credit card applications for beginners
First of all, congratulations on taking the first step to having a "credit history"!
It's important to get a credit card, even if you have no use for it. Having credit cards will build up your credit history which will help you down the road when you want to purchase your car, home or even rent an apartment. You're more likely to be approved for these major purchases if you have had some credit cards under your belt, especially if you paid on time. And that's the key, please keep that in mind while reading this article. I'm assuming that you'll be responsible with your credit cards.
Onto the cards..
1. Look for cards that have cash incentives. I've seen many credit card companies offering $100 for just using their card!
2. Look for 0% on purchases or balance transfers (usually for first 12 months). Even if it's your first card, you might still be able to take advantage of the balance transfers. Some companies will even send the "balance transfer" funds directly to your checking account. But becareful not to go overboard and max out your card. 12 months do go by pretty fast believe it or not.
2a. If you're doing a balance transfer, make sure that you look for the fees involved. Some may waive the BT fee while other have it at 3% with NO maximum limit on the fees.
3. Make sure there's no annual fee or any membership fee.
4. Look for those that offer cashback. This is a great incentive to not use cash on purchases. Some cards even give 5% cashback on specific purchases (at certain stores or at gas stations)
It's very possible to find a card that has all of the above features.
Now here are my personal tips on filling out the application:
1. If it asks for "total household income" do fill that out and include the income of every person in your household..the more income the better of course because they will give you a higher credit limit. (BUT NEVER max out your cards, try always to stay less than 30% of your credit limit.)
2. Where it says enter your mother's maiden name...you don't necessarily need to enter your mom's maiden name. You can but don't need to.
Why? Because every site I go to now, they're asking me for my mother's maiden name which makes me think that that info can be easily "stolen".
Once you have the card, your number one priority is to pay on time. This is very important if you want to keep your 0% on purchases or balance transfer. Even if you're late by one day, the 0% might can up to 20% or even higher.
But of course, you should ideally never carry a balance and pay it off every month and not just pay the minimum.
It's important to get a credit card, even if you have no use for it. Having credit cards will build up your credit history which will help you down the road when you want to purchase your car, home or even rent an apartment. You're more likely to be approved for these major purchases if you have had some credit cards under your belt, especially if you paid on time. And that's the key, please keep that in mind while reading this article. I'm assuming that you'll be responsible with your credit cards.
Onto the cards..
1. Look for cards that have cash incentives. I've seen many credit card companies offering $100 for just using their card!
2. Look for 0% on purchases or balance transfers (usually for first 12 months). Even if it's your first card, you might still be able to take advantage of the balance transfers. Some companies will even send the "balance transfer" funds directly to your checking account. But becareful not to go overboard and max out your card. 12 months do go by pretty fast believe it or not.
2a. If you're doing a balance transfer, make sure that you look for the fees involved. Some may waive the BT fee while other have it at 3% with NO maximum limit on the fees.
3. Make sure there's no annual fee or any membership fee.
4. Look for those that offer cashback. This is a great incentive to not use cash on purchases. Some cards even give 5% cashback on specific purchases (at certain stores or at gas stations)
It's very possible to find a card that has all of the above features.
Now here are my personal tips on filling out the application:
1. If it asks for "total household income" do fill that out and include the income of every person in your household..the more income the better of course because they will give you a higher credit limit. (BUT NEVER max out your cards, try always to stay less than 30% of your credit limit.)
2. Where it says enter your mother's maiden name...you don't necessarily need to enter your mom's maiden name. You can but don't need to.
Why? Because every site I go to now, they're asking me for my mother's maiden name which makes me think that that info can be easily "stolen".
Once you have the card, your number one priority is to pay on time. This is very important if you want to keep your 0% on purchases or balance transfer. Even if you're late by one day, the 0% might can up to 20% or even higher.
But of course, you should ideally never carry a balance and pay it off every month and not just pay the minimum.
